Ex-Brazil basic pig iron (BPI) prices have stabilized at $400/mt FOB with more deals confirmed as having been done to the US at this level. In addition to a sale for 30,000-35,000 mt reported earlier this week, two contacts for 50,000 mt each, also for BPI with 0.15 percent phosphorus content, have been disclosed as concluded to two different US mills, also at $400/mt FOB for November shipment.
Market sources have pointed out that, even though US mills have been insisting on much lower levels, Brazilian producers have managed to sell at not lower than $400/mt FOB, which was “the psychological level” for the market for indication of further movements, as this level is very close to the breakeven for them. “Again, some mills will consider cutting production if the price goes below this. The rainy season is coming,” a source said.
The recent deals translate as $430-435/mt CFR, including freight and financing costs.
“I am still not sure if they [Brazilian producers] will manage not to fall further, but for now the price is settled,” another source said.