Ex-Brazil BPI prices post expected slight increase in new deals to US

Thursday, 02 May 2024 16:30:56 (GMT+3)   |   Istanbul
       

Prices for Brazilian basic pig iron (BPI) have increased in the latest deals to the US compared to the previous round of sales, though producers have failed to achieve the targeted levels. Some gradual improvements in new deal prices had been expected by market participants, but a further increase is very doubtful, taking into account the stable outlook for the US scrap market.

A deal for 50,000-55,000 mt of ex-Brazil BPI with 0.15 percent phosphorus content was signed at $445/mt FOB early this week, though some market sources said that the price could include some finance expenses, so the FOB level may net back to $440-441/mt FOB for the producer. This contract followed another deal signed for a smaller volume of 10,000-15,000 mt at $445/mt FOB, which is a top-up sale to a previously booked volume. As a result, the deal prices have roughly added $10/mt from the contracts done a month ago at $430-435/mt FOB. The SteelOrbis reference price for high-phosphorus BPI from Brazil has increased by $5/mt over the past week to $440-445/mt FOB. A few Brazilian suppliers are still holding offers at $450/mt FOB as they do not see active interest from the US, though at least one seller has increased offers further up to $460/mt FOB, which has been too high for the current market conditions, according to sources.

“It’s another live and let live gesture, allowing mills to slightly increase the price by $5/mt as a gesture of goodwill from the buyer… Considering the [Brazilian] mills are aiming for $450/mt FOB and higher, it’s another sacrifice, confirming the market is still poor,” a market source said.

As for BPI with low phosphorus content of 0.10 percent, offers have been rarer and at $465-470/mt FOB, translating to $495-500/mt CFR to the US. The reference price for import BPI in the US, including both grades, has increased by $5/mt over the past week to $475-485/mt CFR.


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