Prices for ex-Brazil basic pig iron (BPI) have been stable over the past week as there have been no new deals confirmed, with US buyers insisting on discounts, but Brazilian mills are resisting, having higher costs. The rainy season may prevent prices from recording a further decline, but the question is how long will exporters manage to hold their ground.
Offers for BPI with 0.15 percent phosphorus content are still at $430/mt FOB and above, but “buyers were not in the market at this price,” a trader said. The latest deal reported last week was at $425/mt FOB, plus some finance expenses. But no new deals have been done this week. “Production costs in Brazil are increasing, so I don’t know what will happen. The rainy season is not allowing space for decline,” a Brazilian seller said. The reference price for BPI with 0.15 percent phosphorus content has remained at $425-430/mt FOB from the north of Brazil, which translates to $450-460/mt CFR New Orleans. Falling scrap prices in Turkey have also impacted sentiments in the local scrap market in the US.
The offer prices from Brazilian suppliers for BPI with lower phosphorus content have been heard at $455-460/mt FOB, translating to $475-480/mt CFR to the US.