Miller on scrap: Pig iron market takes off

The prices for all grades of pig iron have dramatically risen since SMU’s last report from Nov. 18. During this period, there has been renewed interest in pig iron by US-based electric-arc furnace (EAF) mills. Over the last three weeks, the price of basic pig iron produced in Brazil has risen from $415 per metric ton (mt) to $440/mt FOB Brazil. The delivered price to the US Gulf coast has increased from the low $440s to $470-75/mt. Some of this increase could be freight related, even though the vessels do not pass through the Panama Canal, which has been impacted by drought.

SMU contacted a director for pig iron exports for several producers in southern Brazil. He said his organization sold to the US at $430/mt FOB, and they are now asking $440.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.