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

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40+ 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.

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