Raw Material Prices
Pig iron market quiet as US mills aim to outwait Brazilian suppliers
Written by Stephen Miller
October 24, 2025
The pig iron market in Brazil has been fairly quiet since a US-based steelmaker bought two cargoes earlier this month, according to market participants.
Recall SMU reported that two cargoes of 50,000 metric tonnes (mt) each were transacted at $383-385/mt FOB Brazil ($410-412/met CFR New Orleans without tariff). Since then, there has been just one cargo sold for December shipment to the US at $385/mt FOB, they said.
What they’re saying
SMU contacted a US-based pig iron trader to get his take on the market. He thought pig iron prices would stay level through the rest of the year. But he expects to see rising prices during the first half of 2026.
A source in Brazil speculated that Brazilian producers might be happy to sell sideways after four months of downward pricing. In the meantime, there have been more supply reductions over the last week, he added. The apparent culprit: sales prices too low to cover manufacturing costs.
But sideways pricing for December does not seem to be happening, according to the head of a large Brazilian channel. He said no one is willing to pay $385/mt FOB now. He did not specify where US mills were bidding. But he said it was well under their last sales price.
US buyers want to drop pig iron prices to levels commensurate with the decline in prime scrap in their domestic market. Prime price shed $20 per gross ton (gt) in September and another $20/gt in October.
On the last buy, US mills concluded purchases at approximately $10-12/mt less than in August. It is reasonable to believe they want another decline matching this, and they don’t seem to be in a hurry. With one extra cargo in their pocket at sideways pricing, they want to wait until sellers in Brazil accept lower prices, industry sources said.
Stephen Miller
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