Brazil exported 144,600 mt of pig iron in February, 6.9 percent less than in January, according to the local ministry of development, industry and foreign trade, MDIC.
The average FOB export price declined by 15 percent to $214/mt, pointing to the steelmaking grade price reduced by 1.5 percent to $180/mt, while the foundry grade product was exported in average at $230/mt, a 11 percent decline from January.
Exports from the northeastern state of Maranhao increased by 107 percent to 62,700 mt, while exports from the southeastern states of Minas Gerais and Espirito Santo declined by 33 percent to 81,900 mt.
The main destinations of February were the US (66,700 mt at $185/mt), Latin America (38,500 mt at $$221/mt), the EU (29,200 mt at $265/mt) and Asia (9,000 mt at $232/mt), all FOB conditions.
A source from a mid-sized producer of the steelmaking grade pig iron in the southeastern state of Minas Gerais told SteelOrbis that his last export sale was closed at $240/mt, CFR conditions to ports in the US east coast, equivalent to $230/mt FOB conditions.
He added that he is selling the product in the Brazilian domestic market at BRL 760/mt ($210/mt), CFR, no taxes included, only PIS-Pasep levies, equivalent to $180/mt FOB terms.
He mentioned that the company is having an increase of demand, domestic and foreign, as the company is only one of the few already operating in the state: “There was a small increase in demand, but as the supply is reduced, we are benefiting from the situation,” he said, adding that despite the increased demand, the current level of prices results in a very limited profitability.
1 USD = BRL 3.64 (March 14)