Analysis
February 26, 2026
Pig iron market sees price bump on cargo
Written by Stephen Miller
SMU has confirmed the US sale of 55,000 metric tons (mt) of pig iron at a price of $440/mt FOB South Brazil, according to an executive in the Brazilian trade.
This cargo is for April shipment and represents a $5-10/mt increase in price since the last round of sales. It is unclear if there will be additional cargoes sold at this level by the various channels in the country.
Even though freights have sharply increased on Transatlantic runs, the transportation costs from Brazil to the US remain slightly under $30/mt. Therefore, the cost on a CFR US Port basis has increased to ~$470/mt. This cost is before any tariffs are assessed.
Since November 2025, pig iron imports from Brazil (P .15% max) have basically mirrored the rise in US ferrous scrap. After bottoming out at around $375/mt FOB, the pig iron market captured a series of price rises totaling $65/mt with the latest transaction. During the same period, US #1 Busheling prices have risen by about the same level. This further ties these two steelmaking commodities together on a price basis.
Tariffs
Regarding the tariffs on pig iron and DRI/HBI, there has not been a meaningful change.
SMU spoke with a US-based trade attorney about the current situation. He told us effective Feb. 24, 2026, the US has enacted a 10% tariff under Section 122 of the Trade Act of 1974. This tariff will be in effect until July 24, 2026, unless Congress extends it.
The products exempted from these tariffs are laid out in Annex 1 and 2 on the website of WhiteHouse.gov. These exemptions are very similar to the “reciprocal” tariffs under the International Emergency Economic Powers Act (IEEPA).
Both pig iron and DRI/HBI are not listed as exempted despite their unavailability domestically in the needed quantities for US steelmaking, the attorney added.
The attorney said he does not believe US steelmakers will mount any type of challenge to the lack of exemption for pig iron. However, he said the tariffs, in general, could be challenged by other interests in the courts.
