Analysis
January 13, 2026
Pig iron market gains steam
Written by Stephen Miller
The imported basic pig iron market has shown upward price movement over the last week.
US-based steelmakers entered the Brazilian market and bought at least three full cargoes (150,000 metric tons) from the Southern regions. The price, according to our sources there, was $415/mt FOB Rio/Vitoria, Brazil. The prevailing ocean freight is $28-30/mt, which lands the material at US ports at $443-445/mt. Of course, these February shipments will face a 10% tariff unless the current rates are suspended or reduced.
The pig iron channels in Brazil sold at $400/mt FOB in their previous round of sales in November, as our coverage in the December noted. However, there was an unconfirmed sale at $408 mid-month. As the producers saw the US scrap market starting to move up in December, they offered their material at $420/mt. It appears a compromise settled the price at $415, at least for now.
SMU spoke with a US-based trader, who verified the new pricing at $445/mt CFR. “I expect pig iron to continue rising during Q1, up to $455-460/mt CFR,” he said.
There had been concern that European buyers may compete with American mills for February shipments. However a director for a large channel in Brazil told SMU the Europeans were not a factor for basic pig iron this time.
The Brazilian Pig Iron Association reported the 2025 statistics for total pig iron shipments. There was very little change from 2024. In 2025, Brazil exported 3,920,000 mt of which 3,370,000 were shipped to the US (86%). In 2024, Brazil exported 3,7765,000 mt of which 3,270,000 were sent to the US (87%). These figures include all grades of pig iron; basic, foundry and nodular.
