Posted on 27 Feb 2024
Brazilian pig iron export prices remain stable. Market participants confirm to Kallanish that producers have tried to up their offers for the March-ending deliveries. This action is unacceptable to North American clients who continue to put downward pressure on the market.
"The gap between seller's and buyers’ expectations is very wide since Brazilian producers remain firm in not accepting bids lower than $460/t," says a trader. "They say they had production and supply problems during the rainy season, while their profit margins have practically been reduced to zero, so they cannot lower prices now."
Another source confirms that large producers are not considering sharp movements during this week, although the new market situation with the decline in the value of scrap is pushing them to make price adjustments.
“They are trying to close their next contracts at a level that covers their costs, but buyers mainly from the US are not willing to pay more than $440/tonne for material,” he observes. "The return of the Brazilian pig iron market after the Carnival holidays does not seem to obey the current market reality."
According to traders, the last week of February begins with Brazil’s pig iron price at $450-460/t, with the freight cost remaining at $25-30/t.
Source:Kallanish
