A major independent pig iron producer from the Brazilian southeastern state of Minas Gerais told SteelOrbis that the steelmaking grade product is currently sold at $350/mt, FOB conditions, comparable to $384/mt last month.
According to the source, the downturn reflects chiefly reduced demand from the steel industry in the local and foreign markets.
Another producer in Minas Gerais, dedicated to the steelmaking grade, confirmed to SteelOrbis that the price for the steelmaking grade product is moving down, but his last sale was still closed FOB at BRL850/mt, the equivalent to $375/mt, adding that the company is already considering idling its only blast furnace due to lack of profitability.
But for the foundry grade product, export FOB prices remain stable in the $455/mt to $465/mt range, while the price in the domestic market, also stable, remains in the $571/mt to $576/mt range (FOB, excluding IPI/value added tax).
The sector as a whole, considering the producers in the north and the southeast of the country, remains operating at 50 to 60 percent of its estimated 10 million metric tons per year capacity.