Sources close to SteelOrbis are confirming ex-Brazil basic pig iron offers at $245-260/mt ($226-236/nt) FOB Brazil and foundry at $275-280/mt ($250-254/nt) FOB Brazil. They note that offers from Brazil for basic pig iron have declined $10-15/mt ($9-14/nt) from $260-270/mt ($236-245/nt) FOB Brazil a month ago. Offers for foundry grade, on the other hand, have declined $7-12/mt ($6-11/nt) from $287/mt ($261/nt) FOB Brazil in late July.
CIS offers of basic pig iron to the export market have increased $20/mt ($18/nt) compared to offers in July. Presently, offers from the CIS to the export market for basic pig iron are at $250-255/mt FOB Black Sea. Considering the lower freight costs due to proximity, sources note the cost advantage of ex-Brazil purchases.
The last numbers for foundry into the US in July were $287/mt ($260/nt) FOB Brazil or $303/mt ($275/nt) delivered to New Orleans.
SteelOrbis has been informed yesterday, August 16, of a recent large purchase of basic grade at $250-255/mt ($227-231/nt) delivered to New Orleans, placing the actual buy at approximately $240-245/mt ($218-222/nt) FOB Brazil. The last known large deal in late July into the US for basic grade was $265/mt ($240/nt) delivered to New Orleans.
Despite the improved pricing from Brazil, sources note that pig iron transactions are presently very slow domestically. They anticipate a limited amount of import activity happening for the balance of the summer. Pig iron buyers are proceeding with import purchases only to the extent that a majority of the cargo has been presold.