SMU Community Chat

US mill buys two cargoes of Brazilian pig iron down from Sept prices
Written by Stephen Miller
October 9, 2025
A US steelmaker has purchased two cargoes of basic pig iron from southern Brazil, according to market participants.
The transactions come on the heels of the International Iron Metallics Association (IIMA) meeting last week in Sao Paulo, Brazil.
The two cargoes changed hands at prices far lower than the Brazilian pig iron community had hoped for.
SMU spoke with a large channel in Brazil who confirmed his company sold a cargo of 50,000 metric tons (mt) to a US buyer at $383/mt FOB Brazil. That’s down $12/mt from the last cargo sold in September.
A second source in Brazil told SMU that another channel sold a cargo at $385/mt FOB. He estimated freight to US ports from southern Brazil to be $27/mt. That lands the cargoes at a CFR price of $410-412/mt. Recall that, for US buyers, a 10% tariff applies.
SMU contacted a US-based pig iron trader for his view of these transactions. “This reduction is in sync with the market,” the trader said, noting that US prime scrap prices fell $20 per gross ton (gt) for October.
The trader thinks prices will be sideways to down for the rest of the year. “Brazilian producers don’t like it. But not much they can do,” he said.
Pig iron-bush premium narrows
These new sales have narrowed the premium for pig iron over #1 Busheling on a delivered basis to mills located on the lower Mississippi River. The cost for pig iron equates to approximately $452/gt to these mills. The busheling price this month is $410/gt, for a $42/gt spread. Once the tariff is added, this cost increases by about $35/gt.
For mills in the Chicago district, the cost increases due to more expensive logistics. The added cost of pig iron compared to Busheling at $390/gt delivered to mills in the Chicago region is about $80/gt. And that’s before the application of the tariff.

Stephen Miller
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