Sentiments in the import basic pig iron (BPI) market in the US have worsened recently with a few deals signed by a trader at lower levels. Even though Brazilian mills are still hoping for stable or slightly higher prices, this seems illusory for the buyers’ point of view.
Up to three cargoes of Brazilian BPI with 0.15 percent phosphorus content have been traded to one of the major US buyers at $465-470/mt CFR, though some sources claim that the final price for at least one cargo was lower, with bids at $455-460/mt CFR. This is down from the $480/mt CFR level for this grade seen as the reference over the last few weeks. Most market sources agree that the deals were done, but that these materials were booked much earlier and at lower FOB levels (below $435-440/mt FOB). “After these deals, even though they are old positions, US [buyers] will not accept $480/mt CFR,” an international trader said. “Given February scrap [in the US] is heading down and so is US HRC, I can’t follow the market as even this price [in latest deals] should be high for customers,” another large trader said.
As for the fresh offers for ex-Brazil 0.15 percent phosphorus BPI for March shipment, they are still officially at $450-460/mt FOB as mills are claiming higher costs in the rainy season and some slight increase in the benchmark scrap market in Turkey. But the SteelOrbis reference price has remained at $440-450/mt FOB, stable from last week, as it includes not only offers but also tradable levels.
As for BPI with lower phosphorus content, offers are at $490-500/mt CFR New Orleans, with no new deals reported so far.