Brazilian pig iron sellers OK lower prices

Our recent information is indicating this resistance didn’t last long. A large channel did sell a cargo to an American consumer two weeks at a price of $396/mt FOB, which was still lower than the previous sale. Both of these transactions were higher Phos (P .15% max) material.

SMU has learned there has been a cargo sold to the US from northern Brazil at an unconfirmed price of $450/mt CFR. The northern Brazilian cargo was a lower Phos (P .10% max) cargo. This is theoretically a $10/mt increase.

So, what is the feeling on the part of Brazilian producers as we head into July for shipment in August? 

SMU contacted two sources in Brazil to get a glimpse of their expectations. One executive for a large seller said the market has been quiet in south Brazil for the last two weeks. He is expecting the next round of sales to the US will be higher. They should start negotiations soon.

The second source said the producers are hoping the US scrap market will improve. This would result in a higher price for August pig iron sales. However, a rise in the US scrap market in July a quite speculative at this point.

The US has been receiving pig iron from Ukraine on a regular basis in 2025. This is all lower Phos (P .10%  max) material. As previously reported by SMU, April export records show 115,000 mt of pig iron were sent to the US.  This brought Ukrainian pig iron exports to the US to 476,000 mt in January through April.

The May and June statistics have not been released, but it is a safe assumption that shipments to the US have been ongoing. SMU will publish the quantities once they are available.