Having remained in the dark as regards future developments in the steel and raw material markets, global basic pig iron (BPI) suppliers have continued to accept lower bids from customers. In particular, this week a Brazil-based seller has sold material at a price around $40/mt lower than its initially targeted level.
Accordingly, two cargoes of ex-Brazil BPI (each for 55,000-60,000 mt) have been sold to China at $530-540/mt CFR for October shipment. The FOB price is said to be $480/mt FOB, though most market sources doubt that it is possible to find such a cheap freight rate from Brazil to China nowadays. In late August, the seller was aiming to sell material at not lower than $520/mt FOB. Prior to the abovementioned deal, ex-Russia BPI cargo was booked to China at $545/mt CFR. “The appearance of both CIS-based and Brazil-based suppliers in China is a perfect proof that the buying interest in the US market is zero. Today’s market is a buyer’s market, with all further bookings expected to be at lower levels,” an international trader commented with regard to the abovementioned deals.