CRU
June 14, 2024
CRU: Pig iron prices rise on tightened market balance
Written by Brett Reed
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 remained soft as mills started preparations for scheduled summer maintenance. Meanwhile, Brazilian suppliers raised their export offer prices by $5/mt m/m to $480/mt and $450/mt FOB from Northern and Southern markets, respectively. Brazilian pig iron producers have reduced output in recent months while a depreciating local currency supported a 25% m/m rise in domestic Brazilian pig iron prices to BRL2,000/mt, thereby reducing the widening gap with export sales realization. Additionally, tightened market balance in other markets supported higher export prices to the US market. Market participants report that Brazilian producers have been maintaining pig iron export prices at an elevated premium to scrap prices as input costs remain high.
