Sources inform SteelOrbis that ex-Brazil pig iron offers have been quiet in the US market as scrap prices have settled and pig iron producers as well as US mills are “trying to work through the general uncertainty, but also recent positive moves.”
On April 23, SteelOrbis reported ex-Brazil pig iron offers at roughly $415/mt CFR from northern region. Sources inform SteelOrbis that both the southern and northern region prices were trending at $412-420/mt CFR. Prices from Northern Brazil would translate to approximately $400-410/mt FOB and $395/mt FOB from Southern Brazil.
With the uncertainty in early May, sources inform SteelOrbis that “numbers softened” to attract deals, but that due to tight pig iron supplies in Brazil, strength of busheling prices in the US, strong expected demand in the US, continued competition with EU and Mexico destinations for Brazil pig iron supplies, and overall recent positive moves in the global raw materials markets, US basic steelmaking pig iron importers are likely to transact deals “above $400/mt CFR.” The source added that US mills and ex-Brazil pig iron importers may duplicate recent deals at $405-410/mt CFR, but deals could be transacted in the wide range of $395-415/mt CFR US port depending on the players involved.