A compromise has been reached in the pig iron market, sources told SMU. Recall we reported US buyers were bidding $390 per metric ton (mt) FOB or less while sellers were holding sideways at about $400/mt.
For the next month, CRU forecasts that global demand for steelmaking raw materials will increase month on month (m/m).
The pig iron market in Brazil is currently in flux and there have been few, if any, confirmed cargoes transacted for the US.
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
The Brazilian-US pig iron market has remained quiet, market sources told SMU.
Thais Terzian, principal analyst at CRU, gave a presentation of Ore-Based Metallics(OBM), namely pig iron and direct-reduced iron (DRI), and how important they are to the global steel industry.
Prices for four of the seven steelmaking raw materials we track were unchanged from late June through the end of July, while two increased and one declined. Collectively, these material prices rose 1% month over month (m/m), but are down 3% compared to three months ago.
SunCoke Energy reported a steep year-on-year drop in second-quarter earnings, weighed down by weaker coke sales and logistics volumes. Still, the company reaffirmed its full-year outlook and moved closer to acquiring Phoenix Global.
GrafTech International attributed its second-quarter net loss to a non-cash tax expense and lower weighted average realized prices.
The Brazilian pig iron community is playing defense ahead of the Aug. 1 deadline for a 50% US tariff on imports from the South American country. The moves indicate the Brazilian producers do expect the tariff to go into effect.
Divergent opinions emerge on August's scrap outlook.
Will more DRI investment come to the US?
According to our latest analysis, prices for four of the seven steelmaking raw materials we track declined from May to June. Collectively, these materials declined 3% month over month (m/m) and are down 9% compared to three months ago.
How is the ferroalloys market in the US faring with the new tariffs.
The Chicago Business Barometer reports that decreases in new orders, order backlogs, and softer production pulled the index down by 4.1-points to 40.5, in May.
CRU analysts discuss how downward pressure on the US premium has persisted due to weakness in key consuming sectors, while concerns over zinc supply have been largely alleviated for the time being.
The US mills have managed to reduce pig iron prices to correspond with the sharp declines in domestic scrap prices in May.
According to our latest analysis, prices for four of the seven steelmaking raw materials we track increased from April to May. However, select materials saw a collective 1% decline month over month and are down 4% compared to three months ago.
Since the US ferrous scrap settlements for May have been finalized, steelmakers are turning their attention to continued pig iron flows with the wind behind their backs.
Given the news about tariffs and bringing back industries to the US, a brief look back in time may show how our economy changes with technological advances and the shifting economies of scale.
Iron ore prices were largely steady in March, hovering around $100–102 per dry metric ton (dmt) in a quiet market.
The imposition of reciprocal tariffs by President Trump as explained on Wednesday afternoon has rattled virtually every market. This policy has some advantages for the steelmaking sector, but there may be some disadvantages that were not considered, especially for the EAF producers of flat-rolled.
Prices for five of the seven steelmaking raw materials tracked by SMU increased from February to March, according to our latest analysis.
Prices for six of the seven steelmaking raw materials SMU tracks are increased from January to February, according to our latest analysis.
SMU's Stephen Miller provides an update on the raw materials sector.
Prices for the seven steelmaking raw materials SMU tracks moved in differing directions from December to January, according to our latest analysis.
Nucor’s raw material segment generated an annual profit of $57 million in 2024. This marked a swing to profit over 2023 when Nucor reported a $14-million loss for the segment. The Charlotte, N.C.-based company did not say in their earnings call on Tuesday what caused this increase besides a 20% increase in the production and […]
There is no doubt pig iron will be needed to fuel the expansion of flat-roll capacity in the US and Canada. Where will it come from? How much will it cost? What will be the quality? Is it a good business to produce merchant pig iron? The US imports between 4-6 million metric tons (mt) per year of […]
Coal miners Consol Energy and Arch Resources have completed what they describe as a merger of equals to form Core Natural Resources. Headquartered in Canonsburg, Pa., the new company has the potential to produce 12 million metric tons (mt) per year of metallurgical coal and more than 25 million mt per year of thermal coal, as […]
Prices for pig iron imports into the US continue to retreat in the face of regional weakness in demand for ferrous raw materials in South Asia and the Far East.