Exports of pig iron from independent Brazilian producers have reached 198,000 mt in June, a 138 percent increase from May, reflecting the return of shipments from the producers in the northern states of Para and Maranhao that were halted in May due to logistics problems linked to heavy rains in the region.
Exports by the northern producers reached 135,000 mt, while exports from the producers in the southeastern states of Minas Gerais and Espirito Santo reached 63,000 mt, against 75,000 mt in May.
The average FOB export price went down by 7 percent in June to $397/mt; exports of the steelmaking grade product averaged at $391/mt, while foundry grade exports reached $447/mt.
A pig iron producer from Minas Gerais told SteelOrbis this week that it has production sold for the next four months and prices are roughly stable for exports, with the last deal closed for the steelmaking grade at $384/mt and $450/mt for the foundry grade.
Independent pig iron producers in Brazil have an estimated combined capacity of 10 million mt per year, but are operating at a rate of 50-60 percent.