Brazilian suppliers have been insisting on high offers for basic pig iron (BPI) this week with more confidence seen in the market after scrap price increase in Turkey and a bit warmer mood in the US.
The major benchmark BPI market – the US – has been relatively calm this week, but one deal for 50,000-55,000 mt of ex-Brazil BPI has been reported at $445/mt CFR New Orleans, for October shipment, up $10-15/mt from the previous contracts for these origins. This price translates to around $415/mt FOB versus previous reference of $400-406/mt FOB. This information has not been confirmed by the time of publication and some sources believe the price is high for the current market. However, a few sources agree that “the big producers try to get at least $10/mt more from the last trades. But the picture is mixed for now,” a trader said.
The ex-Brazil BPI reference price has been settled at $410-415/mt FOB for 0.15 percent phosphorus BPI.
The general range for import BPI prices in the US has increased to $440-455/mt CFR, up by $10/mt over the week, as for the lower phosphorus pig iron transitions suppliers will target at least $455/mt CFR in the near future.
“I would bet it [the uptrend] is only temporary, as long as finished sales have not picked up, driven by a structural end consumer demand, which is not at the horizon at all,” an international trader said.