The long-standing silence in the ex-Brazil basic pig iron (BPI) market has ended this week with at least one deal reported at a lower level. US buyers have failed to achieve prices as low as those they had voiced in bids last week, but a downtrend is definitely observed, according to market sources.
A contract from the main Brazilian producer for BPI with 0.15 percent phosphorus content has been signed at $430-435/mt FOB to a US buyer. Though some market sources said that the price without any extras was $430/mt FOB, the supplier itself said the price was at $435/mt FOB. This level is $5-10/mt below offers seen last week. The price translates to near $460/mt CFR New Orleans. The trading of Brazilian BPI has been extremely slow in the past three weeks as the main buyers from the US have been insisting on declines, seeing a softening of scrap and HRC prices in the local market. However, market sources have not excluded a further decrease in BPI deal prices. One trader said that customers may achieve $5-10/mt discounts in the next deals since, though “they [US mills] were not buying for long, sellers are also struggling.”
Also, a deal for ex-Ukraine BPI with low phosphorus content is reported to have been done under a long-term agreement at $485/mt CFR last week.
The SteelOrbis reference price for imported BPI in the US has remained at $460-480/mt CFR as the latest deal was in line with expectations, while bids are still weak.