Ex-Brazil basic pig iron (BPI) trading has slowed down this week as mills are preparing for September shipment sales. Offers have remained stable, and sources mainly think that in the next round of sales price stability will continue, though some downside bias has been voiced by some sources.
The reference price for ex-Brazil BPI with 0.15 percent phosphorus is still at $440-445/mt FOB, with the previous deals done more than a week ago at $441-443/mt FOB, mainly for August shipment. “All is quiet. Mills will probably start September shipment sales next week. I believe the price is going to be stable,” a Brazilian mill said. Another Brazilian source confirmed that offers for September shipment BPI are at $445/mt FOB, stable for over the past 2.5 months. Offers for low-phosphorus pig iron from Brazil are from $450/mt FOB.
However, “this year everything is unexciting, based on $440/mt FOB. We are already in the middle of July, and we have not seen a summer decrease in prices,” a trader said. But he also added that the previous decline in scrap and steel prices in the US have not led to a drop in BPI prices, so it will be hard for US customers to get lower prices now also. Some bids for September shipment BPI have been heard at $435-440/mt FOB.
The SteelOrbis reference price for imported BPI in the US has been at $465-480/mt CFR. “The HRC price in the US seems under strong pressure. I can't imagine much basic grade pig iron being sold at $480/mt CFR,” a trader said. Not many offers have been reported for pig iron from India to the US, but the tradable level is assessed at $465/mt CFR, which may be available if sellers need to push volumes.