The August domestic scrap market looks like it might settle early amid continued strong demand for melting stock from domestic steelmakers and high prices for finished steel.
MagIron LLC has taken a major step forward in its quest to establish itself as the first large-scale US merchant pig iron producer.
The US Trade Representative (USTR) exempted Brazilian pig iron from Section 301 tariffs for faced labor concerns, so what's the story now?
Steel and many steelmaking raw materials have been spared from additional forced labor Section 301 tariffs.
The Brazilian pig iron trade with the US has resumed after a month of inactivity.
Downstream consumers of steel account for many times the employment in steel production. Yet the tariff manufacturers in the federal government have paid scant attention to the needs of most manufacturers.
The US reliance on foreign pig iron has led some to eye bringing production back to our shores.
The Office of the US Trade Representative has finalized a 25% Section 301 tariff on all goods imported from Brazil. Importantly for the US steel industry, pig iron has received an exemption from the tariff.
North American Iron Inc. has announced it has secured additional financing in order to advance its project to convert iron ore tailings into merchant pig iron.
Testimony at last week’s Section 301 hearing put Brazilian pig iron in the spotlight. Domestic steelmakers and Brazilian suppliers warned that proposed forced labor tariffs would hit a critical US input for which there is no domestic substitute.
Notably, pig iron is not excluded from the proposed Brazil measures. This would represent a change from the Brazil EEPA tariffs, which excluded pig iron.
As all these initiatives unfold, one is left with the feeling that disruption of the global order is their primary purpose. As the old order is destroyed, it is time to think carefully about what will take its place.
There has been a pause this month in new pig iron transactions between Brazil and the US due to uncertainty around US tariffs.
One possible reason for the lull in activity is the ambiguity of the tariff treatment of Brazilian pig iron following an announcement last week from the Office of the US Trade Representative (USTR) about Section 301 tariffs.
The pig iron import market in the US continues its upward price movement.
Although price levels have been quite favorable recently in the Brazilian pig iron market, there does not seem to be enough production to keep the pipeline intact.
The prevailing sentiment for May is that #1 busheling and bundles are likely to increase. This may cause pig iron to continue its upward trajectory.
Pig iron availability in the US is in short supply, various sources reported to SMU. However, based upon figures for Q1'26, pig iron shipments from Ukraine and Brazil are at high levels.
There are several factors buttressing the ferrous scrap market against it seasonal fall in the spring months. We all know about the Iran War and the rise in fuel costs. Other factors include strong steelmaking activity, rising steel prices, lighter inbound scrap flows, and firm export markets.
The pig iron market in Brazil continues to rise, despite US scrap prices trading sideways to down for April.
Winter is over now and the scrap landscape is looking a bit less challenging.
Prices for iron ore, aluminum, pig iron, and shredded scrap have all risen in the last 30 days. Busheling scrap held steady, while zinc and coking coal declined.
The pig iron market in Brazil has been quiet lately. There have been few bids or offers made by market participants.
The pig iron market in the Brazil-to-US trade flow is showing strength as supply concerns and increased logistical costs impact recent sales negotiations.
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.
The main discussions surrounding pig iron is the ruling by the US Supreme Courts that “reciprocal tariffs” are illegal.
Strategic Resources also discussed its project in Quebec, which will include a 4-million-ton/year DRI-quality iron ore pelletizer. It also plans to build a plant to produce DRI, then convert it to pig iron in an EAF.
There has been some recent activity of exports of basic pig iron from Brazil. Sources there agree on the activity but diverge on the pricing. What is new to the market in Brazil is the buying interest from the European Union, in particularly, Italy.
MagIron LLC is moving to advance its DR-grade pellet and pig iron strategy. The Minnesota-based company closed on its acquisition of AHMSA's Reynolds Pellet Plant in Indiana on Dec. 31.
All but one of the steelmaking raw materials we track increased in price over the last month