Offer prices for ex-Brazil basic pig iron (BPI) have remained high or have increased further in some cases since, even though trading activity has remained poor, sellers are hoping that the new levels will be accepted by US buyers in January.
Offers for ex-Brazil BPI with 0.15 percent of phosphorus content have been reported at $450-460/mt FOB, versus $450/mt FOB in the middle of December, though the previous deals were done at not above $430/mt FOB. “Buyers are waiting and I don’t believe we will have deals this week or next week. But I am optimistic for January,” a Brazilian source said. Offer prices for BPI with 0.10 percent phosphorus content from Brazil have settled at $460-470/mt FOB.
Higher scrap prices in the US are the main reason for the positive expectations of Brazilian sellers, while production costs have also risen. However, some retreat in scrap prices in the benchmark market, Turkey, may impact expectations.
The SteelOrbis reference price for import BPI in the US has increased by $10/mt over the past week to $480-490/mt CFR, but only on the back of expectations.