Brazil exported 111,400 mt of pig iron in January, 48 percent less than in December 2016, at an average FOB price increased by 10.8 percent to $276/mt, pointing to the steelmaking grade product exported at $255/mt, while the foundry grade was exported in a range of $276/mt to $330/mt, with price deals probably closed in November, according to the country’s ministry of industry, foreign trade and services, MDIC.
There were no registrations of exports by the producers in the north of the country in January, against 73,000 mt in December, but a source from a major producer in the northeastern state of Maranhao told SteelOrbis that shipments in January were all concentrated in the last days of the month, but due to logistics problems were shipped during the first days of February.
The source mentioned that his last export of steelmaking grade pig iron was closed at $324/mt CFR to a port in the US East coast, at an ocean freight rate of $10/mt, both figures stable in one month.
Sources expect stability or even an increase in pig iron export prices in the short term, based on information that producers in Ukraine are having problems with the supply of energy, reducing production and affecting the supply/demand balance.
Brazilian pig iron shipments of January were destined to South America (39,100 mt at an average price of $267/mt), Asia (38,100 mt at an average of $294/mt), the EU (31,700 mt at an average of $260/mt) and Australia (1,900 mt at an average of $320/mt), all FOB conditions.