At the moment, basic pig iron (BPI) prices in the import market in the US are still ranging from stable to slightly down despite the rise in local scrap prices. But Brazilian exporters are likely to target an increase within a few weeks amid seasonal factors as the rainy season is starting.
The latest deal confirmed from Brazil for BPI with 0.15 percent phosphorus was done at $435/mt FOB last week, which translates to $460/mt CFR in the US, as confirmed by market sources from both the export and import sides. Together with the previous contract rumored at $430/mt FOB, most sellers have closed November shipment order books. The reference price for ex-Brazil 0.15 percent Ph BPI has remained stable over the past week at $430-435/mt FOB. However, “I do believe that pig iron prices will increase at the end of the year. The rainy period in Brazil will start soon and charcoal prices which are already on the high side will be even higher. Pig iron production costs will increase certainly, and suppliers will need to pass on those costs to end-users, at least they will try,” a source from Brazil said. Another source agreed, commenting, “We had the first spring rainfall in the state [Minas Gerais] yesterday, in the wake of which producers have already started showing concerns about charcoal prices - the same old story we hear every year."
Apart from Brazilian deals to the US, there has been a trade from India to the US at $450/mt CFR, as heard by most market sources. However, since it was done a week ago and as usually Indian material is quoted at least $5/mt lower than Brazilian or Ukrainian material, this price has not been included in the SteelOrbis reference price.
Also, a contract for ex-Ukraine BPI is heard to have been done to the US, but the price has not been confirmed by the time of publication. Most sources believe it is close to $460/mt CFR.
The SteelOrbis reference price for import BPI in the US has settled at $455-465/mt CFR, down by $5/mt on the lower end over the past week. The higher end has been stable at $465/mt CFR as it represents stable offers for ex-Brazil 0.10 percent Ph BPI, at $445/mt FOB North Brazil.