Active purchasing by China and firm scrap and iron ore prices globally have caused basic pig iron (BPI) exporters, and Brazilian exporters in particular, to increase their offers.
Accordingly, current ex-Brazil offers for BPI with 0.15 percent phosphorus content are at $310-320/mt FOB, versus $310/mt FOB fixed in deals done on Friday last week. Another 60,000 mt lot was sold to China by a trader at $310/mt FOB, in line with the similar latest deal reported by SteelOrbis on June 5. The deal level is equivalent to $340/mt CFR. Market insiders say that as of now it is hard to find a customer eager to pay above $343-345/mt CFR. In the meantime, the appreciation of the Brazilian real against the US dollar has caused a cautious mood among some suppliers. “We are concerned about our currency, and so we are not active in offering”, one of the main Brazil-based sellers said.
Ex-Brazil BPI offers to the US have been voiced at $330-340/mt CFR, with no deals closed as the prices are not considered workable. By the end of the week, SteelOrbis has been informed of two bookings for ex-CIS material to the US at $320/mt CFR.