India sells decent BPI volumes to US market, which is facing limited supply

India has managed to significantly strengthen its presence in the US BPI import market, having signed contracts for 300,000 mt over the past two months. These volumes are expected to give US buyers temporary support while resisting the higher prices for BPI amid a certain allocation shortage seen in the market from the regular suppliers.

The most recent ex-India BPI cargo has been sold to the US at around $490/mt CFR, with the price being a bit of a surprise for market players since it is quite a bit lower than the latest discussions with Brazil at $520-530/mt CFR, as SteelOrbis reported. The quality of Indian BPI is somewhat lower compared to that from Brazil, and Brazilian BPI prices can be up to around $20/mt above those from India. If these factors are taken into consideration, the big US buyers would insist on prices not above $510-515/mt CFR for non-India-origin BPI.

With the bookings concluded from India, US BPI buyers are now expected to show certain resistance to the higher price targets voiced by suppliers, particularly those from Brazil. Currently, the supply from Ukraine, as well as from Brazil, is limited, which makes the sellers’ position stronger. However, due to the deals for BPI from India, it might be hard for Brazilian suppliers to sell at $530/mt CFR, at least not in large quantities.

As a result, the SteelOrbis reference price for imported BPI in the US is now set at $510-530/mt CFR, still marking an increase compared to the levels seen in early May, but down from the $520-530/mt CFR levels reported on Friday, May 15.