Raw Material Prices
US pig iron market lacks price firmness
Written by Stephen Miller
August 19, 2025
Prices remain subdued in US pig iron market, sources said.
As reported in our last update, there were four cargoes of Brazilian pig iron sold to the US at prices ranging from $398-401 per metric ton (mt) FOB South Brazil. The freight is approximately $30/mt.
After checking with sellers in Brazil, there have not been any other sales since then, with the possible exception of small unconfirmed cargo for Mexico. Pig iron executives based in Brazil have told SMU these current prices do not cover their costs, especially with the weakening US dollar.
SMU spoke with a Brazilian trader who said, “Producers are worried about their costs that are very close to the last sales to US.”
He also remarked the Brazilian real is getting stronger against the US dollar, decreasing their expected returns.
They are hoping for an increase for the October sales negotiations. However, US buyers are unlikely to agree to an increase with the US scrap market projected sideways again for September and still facing a 10% tariff on Brazilian imports.
On the tariff front, the imposition of a 25% tariff on pig iron from India essentially halts further sourcing from that country. There remains a 10% tariff on Ukrainian as well as Brazilian pig iron imports. Russian material remains banned, at least for now.
Meanwhile, despite the tariff, Ukraine kept shipments to the US on schedule. According to the State Customs Service in Ukraine, exports to the US in July were 119,600 mt. At the same time, imports from Brazil totaled 132,000 mt. This figure will be larger in August.
In comparison to the price of scrap in the US, Brazilian pig iron delivered to Great Lakes regional mills was at an approximate cost of $495 per gross ton (gt). The August price for #1 busheling and bundles in these districts is $430/gt. This premium for pig iron is within normal ranges. But, adding the 10% tariff, this cost increases by about $40/gt to $535/gt. The costs for steelmakers on the Lower Mississippi are $10-15/gt less.
This is not a great situation for US buyers. They should be thankful, however, the 50% tariff on Brazil did not include pig iron because the cost would have increased to about $685/gt.
US-based buyers would either have to pay the tariff or suspend shipments from Brazil with few other options. The seriousness of this prospect cannot be overstated, even though the mills downplayed it in their earnings reports.
Stephen Miller
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