SÃO PAULO Brazilian merchant pig iron makers in both the countrys north and southeast have closed export sales transactions, sources told AMM sister publication Steel First.
Producers in the northern region of Carajás reportedly sold a 70,000-tonne cargo to a U.S. steelmaker at $409 per tonne c.f.r. Port of New Orleans for shipment in September.
The f.o.b. level for such deal would be around $395 per tonne, unchanged from the previous sale in the region, which was closed with a Mexican steelmaker.
"But this was an increase if you consider the previous sale to the USA, which reached $395 to $400 per tonne c.f.r.," one source at a Carajás pig iron producer said.
Other Carajás producers have been looking for prices of $415 per tonne c.f.r. to the port, also for shipment in September.
"Weve received a signaling of $413 per tonne c.f.r.. We might close a deal (this) week," the source added.
There was a reported sale of Russian pig iron to the United States at $412 per tonne c.f.r. this past week, one U.S.-based trading source said.
In the southeastern state of Minas Gerais, producers sold a 50,000-tonne cargo to a trading company at $378 per tonne f.o.b., up $5 per tonne from the previous transaction involving Minas Gerais material. That deal had closed at $372 per tonne f.o.b., with 23,000 tonnes expected to be shipped to a port on the U.S. East Coast.
The 50,000 tonnes sold at $378 per tonne will be shipped at the end of September from Rio de Janeiro, but the destination has yet to be declared, sources said.
"Ive heard about two possible destinations: Italy or Asia," one Brazilian trading source said.
A second U.S.-based trader said the cargo will probably go to China.
For their next negotiations, Minas Gerais producers will continue looking for f.o.b. prices of $375 to $385 per tonne, sources said.
A version of this article was first published by AMM sister publication Steel First.