Raw Material Prices

Miller on Raw Materials: US pig iron market heats up
Written by Stephen Miller
February 14, 2025
There has been considerable upward movement in the US prices paid for future shipment of Brazilian-produced pig iron over the last week.
The last confirmed sale of basic pig iron from Southern Brazil in January was at $395 per metric ton (mt) FOB Rio/Vitoria.
This week SMU learned a 50,000-mt cargo was sold to a US-based mill at a price increase of $20/mt, which raises the FOB price $415/mt. This cargo delivers into New Orleans or other Gulf ports at $438/mt and will not ship until April.
Keep in mind, southern Brazilian material is considered “High Phos.”
Where are prices going from here?
We reached out to a prominent US buyer for comment. He said the current price for Brazilian pig iron is $430/mt CFR. He added this price may go up with firmer scrap prices, as it has with the news about the latest transaction.
Brazilian sources
SMU spoke with two sources in Brazil about the reasons for this increase and what to expect going forward.
The first source indicated there has been a reduction of production due to the rainy season in Brazil. He said negotiations are underway for future cargoes at $425/mt FOB ($448/mt CFR).
A second source who represents several producers said offer prices had been raised to $430/mt FOB with a freight estimate of $23-25/mt to the US.
It is safe to say, the February increases of US prices for scrap and the cutback in pig iron production in Brazil are the main reasons for these fairly large jumps in pig iron prices.
US mills still say they have alternative sources at less expensive prices available. The only other recent source known was India. It’s not clear why US steelmakers are buying from Brazil at these increased price levels if they could rely on tonnages from India at less money.
Another US perspective
Another US-based trader indicated the northern Brazilian producers of lower Phos material have raised their offer prices to $445/mt FOB.
The freight to the US should be around $18/mt, putting it into US ports at $463/mt. However, with Russia banned from shipping to the US and Ukraine shipping only an occasional cargo, low Phos pig iron remains fairly scarce.
If the conflict in Ukraine is settled and sanctions lifted, the low Phos material will again be available and the pressure on Brazilian supplies will abate.
Until then, pig iron sourcing could become a challenge, especially if US demand for hot-rolled coil (HRC) improves and new capacity comes on line.

Stephen Miller
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