A Brazilian pig iron maker from the country’s northern region of Carajás recently concluded a deal with a trading company for US$310/tonne fob, Steel Business Briefing learns from local market sources.
The sale was for roughly 35,000 t, for shipment in January, the sources say. The last known deal in Carajás prior to this one had been concluded at the end of June at US$930/t cfr to the US, for shipment in December.
The sources told SBB that the market remains “completely stopped.”
“I believe the market will only be back in the second quarter 2009, and we will very likely have a new level of prices, initially at some US$350-400/t fob,” said one of the biggest local producers.
At the moment, SBB hears at least 17 of 43 blast furnaces in Carajás are shut down because of weak demand, while in Minas Gerais state, in Brazil’s southeastern region, 80 out of 106 BFs are currently idled.
Steel Business Briefing