Prices for ex-Brazil basic pig iron (BPI) have been relatively stable in new deals to the US for November shipment. The stable to slightly higher outlook for the local US scrap market for October has supported the mood of BPI sellers.
One deal for Brazilian BPI with 0.15 percent phosphorus was signed at $437/mt FOB late last week, while another deal for a similar grade was closed at $440/mt FOB. The first deal has been widely discussed in the market and it seems to have actually been done, though some sources believe that the price included some financing worth $4-5/mt. However, the second deal has been unconfirmed by the time of publication. “Mills have started November shipment sales and the market looks firm,” a Brazilian source said.
US ferrous scrap pricing for the month of October is seen sideways to higher, because supply remains tight at local scrap collection points and fewer US mills are expected to be offline for maintenance during October, SteelOrbis has learned.
The SteelOrbis reference price for BPI from southern Brazil with 0.15 percent phosphorus content has settled at $435-440/mt FOB, just slightly above last week’s levels of $435-437/mt FOB. The lower phosphorus BPI from northern Brazil (0.10-0.12 percent phosphorus) has been priced at $445-450/mt FOB, mostly with no fresh deals reported so far.
The latest sales of BPI from Brazil have been translating to $465-467/mt CFR New Orleans. Also, a deal for Ukrainian BPI has been rumored at slightly below $470/mt CFR, but there has been no confirmation by the time of publication.