Uptrend difficult in ex-Brazil BPI market as US buyers accept only limited hikes

Tuesday, 22 August 2023 16:09:47 (GMT+3)   |   Istanbul
       

Though the overall situation in the ex-Brazil basic pig iron (BPI) market is better than a month ago, buyers in the US have been refusing to accept much higher prices. As a result, only a $10/mt increase has been confirmed in the latest deal from Brazil to the US, though suppliers have been targeting higher increases.

Another deal for ex-Brazil BPI with 0.15 percent phosphorus has been signed to one of the major mills at $410/mt FOB, translating to around $435/mt CFR New Orleans. Though last week there was confirmation of a contract at $445/mt CFR to another US mill, this week a number of market sources said that the material was from the north of Brazil with a lower phosphorus content of 0.10 percent.

The deal price level for 0.15 percent phosphorus BPI was at $400-406/mt FOB in the last round of sales in July. This means that the Brazilian suppliers have achieved some increase, but not as big as expected. “They are trying to increase the price as they are under hardship, but it is difficult to do with only one market that can take their material,” a trader said.

Some offers for 0.15 percent phosphorus BPI from Brazil are still higher, at $415-420/mt FOB and up to $430/mt FOB for 0.10 phosphorus BPI. However, the suppliers are cautious as they are waiting for scrap price settlements in the US and a clearer trend in Turkey.

The SteelOrbis reference price for import BPI in the US has been settled at $435-450/mt CFR, versus $440-455/mt CFR last week. Ex-Brazil 0.15 percent phosphorus pig iron prices have been at $410/mt FOB, against $410-415/mt FOB last week.


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