After a long pause in purchases, this week US customers returned to active negotiations with global basic pig iron (BPI) suppliers, having already signed sizeable contracts with some of them.
Accordingly, by the middle of the current week SteelOrbis has learned of at least three cargoes booked by the key US steelmaker. About 100,000 mt, for October shipment, has reportedly been sold by the Ukrainian producer Metinvest at 387/mt CFR Port of New Orleans. Another booking was done for NLMK’s BPI for November shipment at slightly below $390/mt CFR, according to the company.
As SteelOrbis has reported, US customers have been in negotiations with Brazilian suppliers as well, giving bids mostly at $380/mt CFR. “I am targeting $380/mt FOB, so I rejected it,” a Brazilian seller said.
The return of the US customers has made global BPI suppliers even more enthusiastic in their outlook concerning future developments. “We expect China will come back in the very near future, following the US BPI purchases. It’s a good chance to push up the prices further,” a BPI seller commented.
Taking into account the recent deals done to the US and current offers voiced to China, SteelOrbis’ assessment for ex-CIS BPI prices is $367-370/mt FOB Black Sea, while ex-Brazil BPI offers have widened to $370-390/mt FOB.