Ex-Brazil basic pig iron (BPI) prices have been gradually rising for the third consecutive week. Moreover, the suppliers are convinced that the uptrend will remain firm in the coming period taking into account allocation being limited versus still active demand.
BPI suppliers from Brazil have increased their prices over the past week by $10/mt to $300-310/mt FOB for BPI with 0.15 percent phosphorus content. Last week, at least two cargoes of the mentioned grade, of 60,000 mt each, were traded to China at $320/mt CFR LO, which corresponds to $290/mt FOB, according to sources. Current negotiations with buyers in China are underway at $330/mt CFR, SteelOrbis has learned.
There have been reports in the market that some ex-China shipments of different goods to Brazil were cancelled due to the deteriorating economic conditions. This may result in a shortage of vessels and containers for Brazil and will consequently lead to higher delivered prices in the upcoming deals, Brazilian suppliers believe. “I am not exposed yet; all my freights are contracted as of now. However, if we face such a problem, it will affect our next deals. Obviously, the Chinese will have to pay more,” one Brazilian supplier said.