Despite expectations that the ex-Brazil basic pig iron (BPI) prices have already hit the bottom over the past two weeks, a lower deal has been discussed this week as complete to the major US mill at the level, previously targeted by this steelmaker. Nevertheless, most other suppliers are not ready for this price and believe that a further drop was unreasonable.
A deal for 50,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content has been rumored at $425/mt CFR New Orleans, translating to $397-400/mt FOB South Brazil. This is down from the previous contract at $410/mt FOB ($435-440/mt CFR). Though the contract has not been finally confirmed by the time of publication, at least three Brazilian sources told SteelOrbis that it is complete. “No one knows the reason for the price fall, as scrap was stable and prices have already been too low with production cuts [in Brazil] are awaited,” one of the Brazilian sources said. Local scrap prices are expected to be from stable to $10-20/gt less for June.
Some market sources have also said that a part of sellers have been quoting no lower than $410/mt FOB. The SteelOrbis reference price for ex-Brazil BPI has been settled at $400/mt FOB, down by $10/mt over the week.
The import BPI price in the US has been at $425-445/mt CFR, moving down from $435-450/mt CFR last week, as the higher end of the range corresponds to the low-phosphorus pig iron, where supply is limited.
