Prices for ex-Brazil basic pig iron (BPI) have reached its ceiling for now as even though sellers are sold out for May and partially for June, demand has been reduced with buyers resisting any additional price increase.
The SteelOrbis reference price for ex-Brazil BPI with 0.15 percent of phosphorus content has been stable over the week at $455-460/mt FOB. “The last deal was $460/mt FOB, and even this level seems already high for buyers,” a Brazil-based source. As it was reported last week, one contract for a smaller 30,000 mt volume was done at the abovementioned price. Some suppliers have voiced offers for this material at $465/mt FOB this week, but this level has been assessed as too high. “How could the market accept a BPI price around $465/mt FOB, when Chinese mills are selling billets at the same level,” a trading source commented.
The only transaction heard lately was one for ex-Brazil BPI with 0.10 percent of phosphorus content at $465/mt FOB. The materials will be shipped from north of Brazil and usually prices for the above material are $5-10/mt higher than that of 0.15 percent of phosphorus. The freight from North Brazil to New Orleans is assessed at $22-25/mt versus $20/mt seen before the war in the Middle East started. “There is no material for earlier than mid-June,” a Brazilian source said regarding what is supporting prices at the current level.
“Nodular PI prices jumped $10-15/mt over the last 10-14 days. This should be the end,” a Europe-based source said.
The SteelOrbis reference price for import BPI in the US has been also stable at $480-490/mt CFR.
