Prices for Brazilian basic pig iron (BPI) have remained rather stable in latest deals rumored to the US and Europe as overall supply of high-quality materials has been still constrained, though sentiments in the benchmark scrap market in Turkey have worsened significantly.
A deal for 50,000-55,000 mt of ex-Brazil BPI with 0.15 percent of phosphorus content has been reported as done at $530/mt CFR to the US market recently, which translates to around $500/mt on FOB basis. This is in line with the previous contract at this destination. “Low output is essentially related to charcoal production disruptions during the abnormally heavy rainy season in Minas Gerais (which finished early April). Many charcoal producers didn't return to full production pace so far, which has led to restricted charcoal supply and relatively high prices,” a source from Brazil said. Also, there has been some higher demand for charcoal from other industries, which impacted Brazilian BPI producers. In general, US buyers are still not very eager to accept high BPI prices, but “the scrap metal market in the US is very tight and competitive,” another source said.
In addition, some sale for Brazilian BPI has been heard as done at $535/mt CFR to Europe, and even though this could not be finally confirmed by the time of publication, market sources agree that it is possible as the price translates to around $490-495/mt on FOB basis and it is in line with the level seen in the previous negotiations at this destination. European customers still see the workable level not above $520-525/mt CFR for other origins.
The SteelOrbis reference price for ex-Brazil BPI has remained stable over the week at $495-500/mt FOB, while that for import BPI in the US has been still at $252-532/mt CFR.
