As the US domestic scrap market is trending “strong sideways” this week for the May buy-cycle, sources inform SteelOrbis that basic steelmaking pig iron prices from Brazil remain steady.
While CIS region prices for basic pig iron are heard remaining stable at $330-350/mt FOB to the export market, sources note that prices to the US are on the higher side of the given price range at $340-350/mt FOB Baltic Sea as a result of strong demand driven by the high premium that prime grades are commanding within the US scrap market. Scrap mill buyers in US regions such as Detroit and Pennsylvania have been heard completing scrap deals for May delivery this week up $10/mt on prime grades compared to settled prices in early April.
According to sources, pig iron deliveries from the CIS and Brazil are expected to improve for July deliveries as both regions are addressing their logistic or production challenges. Ukraine has had to contend with railroad blockades while Brazil was hit with heavy rains that affected its charcoal supplies.
According to sources close to SteelOrbis, offers from Brazil continue at $380-390/mt FOB from the Northern region and $365-370/mt FOB from the Southern region. The increased availability of CIS pig iron is not expected to dampen Brazil origin pig iron offer prices in the short-term.