Offer prices for ex-Brazil basic pig iron (BPI) have increased further after the sharper than expected rise in local US scrap prices. However, buyers have not accepted the hike yet, as they have purchased enough volumes previously and can wait.
New offers for ex-Brazil BPI with 0.15 percent of phosphorus content have been voiced at $450/mt FOB, up by $10/mt over the week and $20/mt from the previous deals. “[Producers] claim higher levels, but nothing booked above $430/mt FOB. [US] mills bought good volumes and may wait until January for the new round of purchases,” a trader said. Targeted level for 0.10 percent phosphorus BPI from Brazil is at $460/mt FOB as the lowest.
Prime grade scrap prices like bushelling in the US have settled up by $90/gt in Detroit, up $80/gt in Chicago, up $70/gt in the Ohio Valley, and by up $50/gt in the Northeast and Southeast, much above expected $30/gt as the highest. This local scrap increase in the US is “certainly driven by HRC surge and seasonal affects, i.e. limited scrap availability and some export support,” a trader said.
The SteelOrbis reference price for import BPI in the US has increased by $5/mt over the week to $470-480/mt CFR, mainly on expectations. Ex-Brazil 0.15 percent PH prices have settled at $430-440/mt FOB, up by $2.5/mt over the week.