Following the ex-CIS basic pig iron (BPI) deals disclosed to the market last week, Brazillian sellers have also managed to trade some significant volumes, to China and the US specifically.
Accordingly, this week a US steelmaker has purchased a 23,000 mt cargo of ex-Brazil BPI with 0.15 percent phosphorus content at $275/mt FOB for August shipment, which corresponds to around $290-295/mt CFR. “The steel industry in the US appears to be hampered by supply chain issues in prime scrap caused by widespread shutdowns of automotive manufacturers,” a Brazil-based source said commenting on the uptick in the US BPI imports. Deals to the US for ex-CIS pig iron were done in the second half of April at $298-305/mt CFR, as SteelOrbis reported earlier.
Moreover, Brazil’s negotiations with Chinese customers have resulted in the sale of a total of 70,000 mt. Last week, one Brazilian supplier, having an allocation for July shipment, managed to conclude two deals, 35,000 mt each, at $275/mt FOB, which corresponds to around $300/mt CFR. This week, according to sources, China has been at a standstill due to the Labor Day holiday.
As a result, in the most recent transactions Brazillian pig iron prices have remained relatively stable compared to end-of-April levels or at $275-280/mt FOB depending on the supplier. Most mills are in the market to offer for August shipments, SteelOrbis understands.