Yesterday, December 27, an information about a deal for ex-India basic pig iron (BPI) cargo, done to the US has leaked to the market. Although the seller has preferred not to disclose certain details related to the transaction, while some market sources doubt that any deal has been concluded at all, a trade appears to have been apparently done. According to sources, a 45,000 mt cargo of ex-India BPI has been booked at $450/mt FOB by a US trading company which is untypical player in the BPI market. Meanwhile, the CFR price in the deal in question has caused many debates among market participants. While one reliable source claims that the CFR price might not be below $495/mt, another source has stated that a deal was signed at $480/mt CFR, which calls question, given the current freight rates for 40,000 mt cargo at around $49-50/mt, while for 50,000 mt cargo at around $40/mt. Apart from that, according to a few traditional market players, the workable prices for the US customers are below any prices mentioned above. “It seems really high compared to where we see the market, so I seriously doubt there is any truth to it,” a US -based BPI buyer commented. “While the FOB price at $450/mt is high for the US, a CFR price at $480/mt is low for Indians, so too many doubts left with regard to this deal,” a global BPI seller stated.
In the meantime, the workable indications for BPI in the US market have been reported at $460-470/mt CFR. Brazilian BPI suppliers are ready to start negotiates at levels not below $475/mt CFR.