Basic pig iron (BPI) prices in the US import market have finally increased in new deals for December shipment. Brazilian suppliers have been trying to achieve higher prices for weeks due to the supply limitations linked to the rainy season, but they have managed to achieve price increases only now.
A contract for BPI from northern Brazil with low phosphorus content of 0.10-0.12 percent has been confirmed at $485/mt CFR New Orleans. This level translates to $460-465/mt on FOB basis. “It was for low phosphorus [pig iron]. The market has moved up a little and should remain firm,” a source from the US said. Two weeks ago, the tradable level for ex-Brazil with low phosphorus content was reported at $465-470/mt CFR at the highest.
Also, a sale of Ukrainian low-phosphorus pig iron has been heard at around $480/mt CFR or so, as SteelOrbis has heard from the market. This is around $5/mt above the previous level for this origin, considering no deals were done from Ukraine to the US for this grade when the market was at its lowest level this month.
Offers for ex-Brazil BPI with 0.15 percent phosphorus content have also increased amid supply concerns. In particular, some offers from southern Brazil have been reported at $440-445/mt FOB, which translates to $465-475/mt CFR New Orleans, while some suppliers have already voiced offers at as high as $485/mt CFR.
The SteelOrbis reference price for import BPI in the US (including both low- and high-phosphorus grades) has settled at $465-485/mt CFR, rising by $15/mt on average over the past week.