After a long pause in purchases, this week US customers have returned to the basic pig iron (BPI) market. Moreover, by the end of the current week, negotiations with a Brazil-based BPI have yielded some results. Specifically, a 50,000 mt cargo of ex-Brazil BPI, for November shipment, has been traded at $495/mt CFR Port of New Orleans, which is almost in line with prices targeted by Brazilian suppliers. As SteelOrbis has reported earlier, most offers from Brazil have come at $500/mt CFR Port of New Orleans. The freight rate from Brazil to the US is estimated to be around $35/mt.
According to SteelOrbis’ information, in the coming week at least one more contract for a BPI shipment to the US market is anticipated to be signed.