Brazilian suppliers, who increased offers for basic pig iron (BPI) in mid-December, have finally managed to fix the higher prices in a deal. Higher production costs and the increase in local scrap prices in the US, which was more rapid as compared to the pig iron market, have been behind the positive movements lately.
A contract for 50,000 mt of ex-Brazil BPI with 0.15 percent of phosphorus content has been signed at $450/mt FOB, with the buyer being one of the major US mills, according to sources. New offers have been voiced at $460/mt FOB, versus $450-460/mt FOB in late December. “What we see these days appears to be a precise copy of 2022 year-end, when Brazilian mills were mulling and seeing a bullish market mood, when seasonal effects stepped in and some major buyers replenished stocks,” a trader said, though adding that global demand is insufficient to support a big rise in raw material prices and some big declines may be seen in the coming few months.
The current deal price translates to $480/mt CFR New Orleans, while new offers for 0.15 percent of phosphorus content are at $490/mt CFR. The tradable level for 0.10 percent PH BPI in the US has been assessed at $495-500/mt CFR.