The US import basic pig iron (BPI) market has been silent for most of April with negotiating activity at close to zero over the past two weeks, as buyers have been waiting for sizable declines, following the new tariffs and the expected drop in scrap prices in May.
The latest indicative ex-Brazil BPI price has been at $440-450/mt FOB for material with 0.15 percent phosphorus content, translating to around $470/mt on CFR New Orleans basis. But some sources said that, with the reciprocal tariff at 10 percent for the major pig iron sellers for 90 days, US importers are targeting $450/mt CFR at the highest, equivalent to $425/mt FOB from South Brazil. “Everyone is waiting to see where US scrap settles. I think there will be clarity next week. Also, I think buyers are trying to ask all sellers to assume the tariff [cutting FOB prices], which is of course not possible in full scale,” an international trader said.
“There has been absolutely no news over the past few weeks... The selling and buying sides are waiting to see who blinks first. Generally, Brazilian producers are sold out up to the end of May, considering exports and domestic sales. So, next week will be critical for the resumption of sales,” a Brazilian source said.
The SteelOrbis reference price for ex-Brazil BPI has settled at $440/mt FOB, while the import BPI price in the US stands at $465-475/mt CFR, both down by $5/mt over the past week.