Prices for ex-Brazil basic pig iron (BPI) have been stable over the past week and some rare deals have been reported for the US market for September shipment. However, expectations for August sales have become rather positive, based on developments in the local US scrap market.
Deals for up to 45,000 mt of ex-Brazil BPI with 0.12 percent phosphorus content have been done at $475/mt CFR to the US, translating to near $450/mt FOB or a few dollars lower. This is in line with the prices for low phosphorus material seen last week, though some producers were seeking higher prices.
As for ex-Brazil BPI with 0.15 percent phosphorus content, there has been no confirmation of deals this week, but a sale at $440/mt FOB last week has been widely discussed. This price is equivalent to $465-470/mt on CFR New Orleans basis. “I think it is normal if producers ask for $445-450/mt FOB in August,” a trader said.
There has been no sales activity from Ukraine to the US, but sellers are also awaiting some rebound. “There is a better situation in the US, so we are expecting a revival for September. Scrap for August in the US will be stable or slightly higher,” a source said. The targeted price for ex-Ukraine BPI will be $475-485/mt CFR depending on the buyer and quality.
For now, the reference price for imported BPI price has remained at $465-475/mt CFR, where the lower end represents the latest deals for material with higher phosphorous content, while the upper end represents pig iron with phosphorus content of 0.10-0.12 percent.