Analysis
November 25, 2025
Brazilian pig iron market fields US, European offers
Written by Stephen Miller
The situation has altered in the Brazilian pig iron market since our last update on Nov. 13. At the time, we reported things were at a standstill for sales to US-based steelmakers.
Sources SMU has contacted said things have definitely changed since then, but the standoff for US sales continues. European countries are also bidding on Brazilian material.
One of the larger channels in Brazil told SMU there have been four cargoes, totaling 200,000 metric tons (mt), sold by Brazilian producers to customers in Europe.
The reported price his channel received was $395/mt FOB S. Brazil. Based upon the last US sale in October at $383/mt, this is a $12/mt increase. However, there was a sale to Europe last month, according to sources, which was estimated at $375 FOB. So, this would indicate the price rose an additional $8/mt. Our source said the European price was superior to prices offered by US customers.
The European countries that were the customers were said to be Italy and Germany.
The European pig iron consumers had been able to buy Russian material to a limited extent since 2022. In 2026, the quota for buying Russian pig iron has closed. They are now looking to Brazil for supplies in the quantities they need. Their buying prices can be competitive since they have no tariff as the US does on Brazilian pig iron. It is hard to imagine US mills will let this pig iron supply slip away. They must have seen this situation approaching.
SMU spoke with a US-based pig iron trader who said he believes these reports to be true.
“US buyers were in more price control until this market (Europe) opened for producers,” he added.
He believes US scrap will likely be sideways in December but will rise $20-30 per gross ton (gt) in January and pig iron prices in Brazil should increase to $400-410/mt FOB. He noted Brazilian producers now can achieve a workable price for their pig iron.
A European trader told SMU he has heard about these recent purchases. He views them as supply driven and not necessarily a bullish action. He thinks prices could retreat eventually given the economic outlook in Europe and that the buyers have covered their requirements for now.
SMU reached out to two domestic pig iron users for comment but has not heard back.
At the price of $395/mt FOB Brazil, the cost delivered to New Orleans would be ~$425/mt, assuming a $30 ocean freight. Add to this figure a tariff charge of ~$38/mt for a rough total of $463/mt boat bottom in New Orleans. Add ~$35/mt to discharge and transport via barge and truck to mills in Northeast Arkansas and the cost approaches $500/mt.
In November, the delivered price for #1 Busheling was ~$410/gt ($404/mt).
