Following a deal at $465/mt FOB to the US done in early January, Brazilian basic pig iron (BPI) suppliers have started submitting significantly higher offers. However, the uncertain outlook towards future developments and cautious signs of downtrend in the scrap segment have continued to hold global steelmakers back from active bookings. Nevertheless, by the beginning of the current week a fresh deal for ex-Brazil BPI has surfaced in the market. Accordingly, a 30,000 mt cargo, with shipment in late March has been sold to the US at $475/mt FOB. The prices is $10/mt higher compared to the level in the previous ex-Brazil BPI sale, but is around $20-30/mt lower than the levels initially targeted by a supplier. “The market is rather poor and uncertainty still prevails worldwide. Brazilians are turning bullish, as usual. However, I am afraid a lack of downstream demand will balance their sentiments,” an international trader stated.
The SteelOrbis reference for ex-Brazil BPI has edged up from the previous $465-475/mt FOB levels to $475-500/mt FOB, with the higher end of the range corresponding to the target levels voiced by Brazilian suppliers.