Brazilian pig iron export prices fell slightly due to pressure from North American customers in particular, with new deals and sales closing in the third week of September.
The final price of the latest deals did not differ significantly from recent pig iron shipments to the US as a $5 per ton drop was offset by higher freight costs.
The gap between buyers' and sellers' expectations is wide as Brazilian producers are determined not to accept offers below $400/t. Market participants are reviewing their strategies ahead of the rainy season as profit margins are almost zero. Major producers are considering reducing or temporarily halting operations before signing new contracts at a lower price than they will need to cover their costs.
Two shipments of 50,000 tons each from Brazil to the US were confirmed last week at $405-408/t fob and $30/t freight.
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