Prices for ex-Brazil basic pig iron (BPI) have increased by $5/mt in the latest deals done to the US this week. Some market sources believe that warmer sentiments in the scrap segment have been behind this, though further rises in BPI prices are questionable, at least in the short term.
Two deals for 50,000-55,000 mt each for ex-Brazil BPI with 0.15 phosphorus content have been signed at $435/mt FOB for May shipment early this week, while all previous bookings in February and earlier in March were done at $430/mt FOB. This price translates to $465/mt CFR. “Prices reached the bottom and are rebounding now. Pig iron [from South Brazil] now is just for June shipment availability,” a Brazilian producer said.
At the same time, offers for low-phosphorus BPI from Brazil with 0.10 phosphorus content have been reported at $445-450/mt FOB, which is equivalent to $475-480/mt CFR. This is also slightly up from the previous deal at $440-445/mt FOB.
There has been information about an ex-Ukraine sale at $470-475/mt CFR to the US, but this has not been confirmed by the time of publication.
Most expectations for the local scrap price trend for April are sideways, and, together with some increase in scrap export prices from the US and with local HRC prices seeming to reach the bottom, pig iron producers want to take their chance. However, since demand is still subdued globally and given the unexpectedly weak fundamentals in Asia, market sources agree that further rises in ex-Brazil pig iron prices will be hard. “A tiny storm in a teacup, this is how I consider the recent increase,” a trader said.