Raw Material Prices
Brazilian pig iron prices rise as US buyers face limited supply options
Written by Stephen Miller
March 22, 2024
Prices for pig iron in Brazil have increased despite efforts by US-based buyers to lower them. It has been confirmed that a US buyer has purchased a 55,000-metric-ton (mt) cargo, presumably for May shipment, at $430/mt FOB South Brazil. The Brazilian producers resisted offers at $420/mt and this resulted in the acceptance of their asking price of $430. According to industry sources, the freight to the US was pegged at $27/mt for a CFR price of $457/mt. This cargo of pig iron has a Phos. level of 0.15% max.
Shortly after this occurred, another cargo changed hands at $445/mt FOB, resulting in a delivered price of $467/mt. This cargo has a lower Phos. content of 0.10% max as opposed to 0.15% max, and it originates from North Brazil. However, other US buyers claim they are now being offered pig iron with 0.15% Phos. max at $445/mt CFR U.S. ports.
The next availability from Brazil is now reportedly for June shipment. It is unclear at this point if Ukraine will continue to ship pig iron to the US. Producers in that region have cited increased logistical costs due to the conflict there. They are considering using their iron production to convert into billets, which may be more profitable. If this happens, Brazil will become the only supplier to the US, unless pig iron prices are raised significantly.
Stephen Miller
Read more from Stephen MillerLatest in Raw Material Prices
RMU: Alternative metals market – Q4 showdown looms
The basic pig iron (BPI) market remains virtually unchanged despite perceived weakness in other ferrous materials, such as scrap, billets, HRC and iron ore.
RMU: Ferrous scrap prices poised for August gains
It’s buy week again for ferrous scrap. US steelmakers are expected to offer their prices for August shipment this week. Most of the dealers and brokers RMU has quizzed believe the market has enough traction to hold sideways and even go up.
CRU: Pig iron prices rise on tightened market balance
Pig iron prices have been trending higher in all key markets besides Europe. Limited exports from Brazil and Ukraine are contributing to higher prices in the USA, though soft demand cushioned a sharp price upswing. In the US, pig iron prices increased by $15 per metric ton (mt) m/m to $485/mt CFR NOLA. Buying activity […]
CRU: Size matters – BHP’s bid to be the global mining behemoth
If successful in its overtures to Anglo American, BHP will create the world’s largest diversified miner by a country mile. The rationale for this merger is scale and in mining, size matters.
Hoffman on scrap: Could a floor in Asia firm US prices in April?
Numerous mid-sized export yards in California and in Baja Mexico had little to no inventory on the ground last week because most had sold forward in the falling March market. Looking to secure their margins, they dropped prices across the scale. That resulted in lower-than-normal flows. “I’m sold out through mid-April and even longer if the flow doesn’t pick up” one yard owner said. That turned out to be the position of numerous West Coast suppliers.