Brazilian basic pig iron (BPI) exporters have been holding back from cutting their prices - a move which had been in the US after the sharper-than-expected drop in local scrap prices - since they have managed to sign more deals at stable prices and are not in a hurry to climb down.
The last two deals for ex-Brazil BPI with 0.15 percent phosphorus totaling up to 110,000 mt were done at $430/mt FOB late last week to traders/distributors, mainly for the US market, but also some tonnage was taken for Europe. The price level is similar to the previous three deals reported over the past two weeks. “The Brazilians sold about 250,000 mt of BPI Ph15 at about $430/mt FOB. They’re now booked into the first half of May. They’ll take a bit of time out before discussing any lower prices, if necessary,” an international trader said. A Brazilian mill has also confirmed that there are no lower offers for now as suppliers are “not in a hurry. It will be a quiet few weeks.”
“The last deals were [done] with a hard fight. Now, the argument of the rainy season with higher costs can no longer be used,” another trader said, believing that a decline in new deals is inevitable. The mood in the BPI market has worsened further this week after a Detroit-area mill announced its March scrap pricing at down $70/gt on primes, down $50/gt on shred, and down $40/gt on P&S, much lower than initially expected. Some market sources believe that Brazilian mills still have some available volumes for late April and early May shipment, so it will be hard not to drop BPI prices in the near future.
The SteelOrbis reference price for imported BPI in the US has remained at $460-480/mt CFR (including high and low phosphorus content BPI), based on the latest deals, though sentiments are bearish.