Analysis
September 4, 2026
New transactions in Brazil-US pig iron trade
Written by Stephen Miller
The market activity for pig iron imports in the US has been limited recently. However, there have been two cargoes transacted from Brazil as well as continuing imports from India.
According to sources with whom SMU spoke in South Brazil, a cargo was recently concluded at $445 per metric ton (mt) FOB Rio/Vittoria for shipment to the US in October. This followed a previous cargo sold to the EU at an FOB price of $450/mt.
Both prices are down from a July sale at $460/mt and far below the $500/mt levels Brazilian channels enjoyed prior to the tariff exemption. There are no current tariffs affecting Brazilian pig iron or for that matter, any other importers to the US.
Sources weigh in
SMU spoke with the executive director of a large channel in Brazil who said he has heard US mills are continuing to buy Indian pig iron at estimated prices of $460-470/mt CFR US Ports. This is the main reason shippers in Brazil have had to drop their prices. Even so, the most recent sale delivers into New Orleans at $478/mt based on the prevailing freight of $33/mt.
A director of another Brazilian channel told SMU the group which sold the last cargo at $445/mt needed to sell for reasons not clear. He said a large US-based steelmaker is in negotiation for a similar cargo but “producers are holding the line at $450 FOB South Brazil.”
He also said there was a cargo of Northern Brazilian pig iron priced at $500/mt CFR New Orleans. The material produced in the northern Carajas region has a phosphorus content of .10% max. The contrasts with both Indian and southern Brazilian pig iron which are P .15% max.
Ukraine effects?
The lingering question in the pig iron marketplace is how will the cessation of imports from Ukraine affect prices and supply going forward. In Ukraine, two of the largest producers have been damaged by Russian attacks. Maritime commercial sailings from the Black Sea are also under attack and there is virtually nothing being shipped. In July, Ukraine only shipped one cargo to the US after averaging three cargoes per month during H1. August shipments have not been published yet.
Another question is whether India can maintain the level of shipments to the US to cover the absence of Ukraine and also Russia, which still supplies Turkey and other MENA and South Asian consumers from Black Sea ports.
Through July of this year, Ukraine has shipped ~851,000 mt of pig iron to the US, according to figures provided by the State Customs Service. This equates to about 18% of total US pig iron imports in 2025 and it is all “low phos.”
However, the fact remains that US mills have seen their pig iron costs dramatically lowered for cargoes transacted after the tariffs were lifted in July. Based upon last Brazilian purchase at $478/mt CFR the cost delivered to the furnaces of the EAF mills on the Lower Mississippi River has been reduced to about $525 per gross ton (gt). The #1 Busheling price levels for August were ~$470/gt, on the high end. But this narrows the spread between the two to around $55/gt. The spread that existed back in May/June was estimated at $135/gt.
