Active purchasing by China and firm scrap and iron ore prices globally have caused basicpig iron(BPI) exporters, and Brazilian exporters in particular, to increase their offers.
Accordingly, current ex-Braziloffers for BPI with 0.15 percent phosphorus content are at $310-320/mt FOB, versus $310/mt FOB fixed in deals done on Friday last week. Another 60,000 mt lot was sold to China by a trader at $310/mt FOB, in line with the similar latest deal reported by SteelOrbis on June 5. The deal level is equivalent to $340/mt CFR. Market insiders say that as of now it is hard to find a customer eager to pay above $343-345/mt CFR. In the meantime, the appreciation of the Brazilian real against the US dollar has caused a cautious mood among some suppliers. “We are concerned about our currency, and so we are not active in offering”, one of the mainBrazil-based sellers said.
Ex-BrazilBPI offers to the US have been voiced at $330-340/mt CFR, with no deals closed as the prices are not considered workable. By the end of the week, SteelOrbis has been informed of two bookings for ex-CIS material to the US at $320/mt CFR.