Following a long-standing silence in trading, Brazil-based basic pig iron (BPI) suppliers have recently succeeded in concluding sales to the US market.
Accordingly, SteelOrbis has learned that last week one supplier sold a 35,000 mt cargo of ex-Brazil BPI with 0.15 phosphorus content to a major US steelmaker at $500/mt FOB. Taking into account the estimated freight at $28/mt, the CFR price is assessed at $528/mt CFR Port of New Orleans. Meanwhile, another seller has managed to get a much higher price in a recent 35,000 mt booking of a mixed cargo of BPI with 0.1 phosphorus content and 0.15 phosphorus content, having sold the cargo at $565/mt CFR Port of New Orleans. Both deals were done for June shipment. Notwithstanding the premium for higher quality material in the second deal above, the difference in price is considered by market insiders as being excessive. However, initial offers from sellers have also differed significantly. Accordingly, while one of them was ready to trade at $510/mt FOB last week, another supplier had no intention to go lower than $530/mt FOB.