Ex-Brazil basic pig iron (BPI) has been sold at the previous level targeted by producers, but market sources believe that it will be hard to get a further increase, considering stable expectations for local scrap in the US for April.
A deal for 30,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content is reported to have been done to the US at $460/mt FOB. This price translates to $486-490/mt on CFR basis. Though rumors about sales at $460/mt FOB emerged last week, they remained unconfirmed. This week, a sale is most likely to have been done and the higher price level compared to the previous bookings at $450-455/mt FOB was due to the buyer’s need to replenish stocks. “This is for June shipment, although the mill wanted May shipment,” a Brazilian source said. A few other sources said that there is no May shipment, and only some producers are active in offering for June. “The rainy season, with unusually high rainfall in Minas Gerais this year, is ending. Sometimes it extends up to mid-April,” a trader said.
In addition, it is expected that US buyers will resist further BPI price increases as busheling scrap is expected to move sideways in April despite the recent hike seen in Turkey.
Some Brazilian BPI exporters have been bullish and hiked offers to above $500/mt CFR, which is assessed as too high in the current conditions.
