Raw Material Prices
Pig iron market picks up speed after March scrap settle
Written by Stephen Miller
March 13, 2025
Pig iron channels in Brazil have been patiently waiting for the US scrap market for March to form, so they could assess their increases in offer prices. It seems the overall price jump for prime scrap in the US amounted to ~$30 per gross ton (gt). It did not take very long for the first cargo to change hands.
According to a director of a large channel in Brazil, one cargo was sold to the US at $475 per metric ton (mt) CFR New Orleans.
This higher Phos(P .15) cargo will ship in May from South Brazil and is for 55,000 mt. This price is estimated to be about $15/mt above the last sales price in early February. New offers are set at $480/mt, he added.
SMU spoke with another source in Brazil about the supply situation there.
He said prices are going to definitely increase, especially if tariffs are imposed on Canadian scrap.
The source was not sure how much pig iron is still available for regular shipment to the US, but he sees the US buyers are already raising their prices.
He concluded by saying:
“The next months are going to be good ones for pig iron producers.”
We also contacted an American trader and distributor who indicated he thinks higher Phos pig iron will eventually reach the $500/mt CFR plateau based upon recent activity.
He also said supplies of lower Phos(P .10 max) pig iron from Northern Brazil, which is available in limited volumes, will carry a $15-20/mt premium over their fellow southern producers.
In terms of the price difference between #1 Busheling and basic pig iron based upon the most recent sale at $475/mt CFR New Orleans, it has narrowed slightly since busheling rose ~$30/gt and pig iron only increased by $15/gt.
For shipments destined for the Chicago area, the pig iron premium over busheling is at least $42/gt. Shipments to mills on the Lower Mississippi will carry a pig iron premium of ~$25/gt based upon their lower logistical costs and their higher busheling prices.
As recently as last October, the premium for pig iron was pegged at $100/gt.
Stephen Miller
Read more from Stephen MillerLatest in Raw Material Prices
Pig iron market outlook cloudy
The pig iron market in Brazil is currently in flux and there have been few, if any, confirmed cargoes transacted for the US.
US-Brazil pig iron trade stalls heading into fall
The Brazilian-US pig iron market has remained quiet, market sources told SMU.
Steelmaking raw material prices hold steady
Most steelmaking raw material prices we track saw little change across the month of August. Iron ore, pig iron, shredded scrap, busheling scrap, zinc, and aluminum prices all held relatively steady,
US pig iron market lacks price firmness
Prices remain subdued in US pig iron market, sources said.
Most steelmaking raw material prices hold firm
Prices for four of the seven steelmaking raw materials we track were unchanged from late June through the end of July, while two increased and one declined. Collectively, these material prices rose 1% month over month (m/m), but are down 3% compared to three months ago.