Sources inform SteelOrbis that US pig iron buyers have primarily focused their attention on Brazilian negotiations in early August as CIS origin pig iron at prevalent spot price offers of $410-415/mt CFR are considered “too high.”
On August 3, SteelOrbis reported that ex-Brazil basic steelmaking pig iron deals were reportedly achieved at $375/mt FOB from southern Brazil or approximately $398-403/mt CFR. A source noted that negotiations and some buying activity continued through the week ended August 10, while estimating most deals were achieved at $390-400/mt CFR, especially considering the downward pressure on scrap over the week.
According to a source, the strong price level still prevalent in pig iron imports, despite the deeper slump in HMS I/II 80:20 import prices to Turkey and the decline in import shredded scrap prices to other regions, is attributed to the tight prime scrap market in the US that has prices on busheling scrap at or above $400/mt delivered in most regions. The source added that CIS conversations should result in deals sometime soon as the recent downward move in global scrap prices has provided firm direction and sellers should “prove more flexible.”