In late May, SteelOrbis reported the most recent basic steelmaking pig iron deals from both the Northern and Southern Brazilian regions at approximately $370-375/mt CFR US port. In FOB terms, deals were reported at $340/mt FOB Southern Brazil port and $360/mt FOB Northern Brazil port.
According to sources, basic pig iron offer prices have declined in the last week and are presently at $325-340/mt FOB Southern Brazil port and $345-360/mt FOB Northern Brazil port. These prices translate to approximately $355-370/mt CFR US port.
In CFR terms, this change reflects a fall of $15/mt from the bottom of the previous range and $5/mt from the top of the same range. In FOB terms, offer prices have declined up to $15/mt from the latest deals in both regions.
According to sources, the price decline has been driven by lower offers from US buyers for late summer pig iron output due to expectations of a soft-sideways US domestic scrap market in June across most grades, although prime grade selections are expected to trend sideways. Sources note that the pig iron market will likely remain quiet until the US domestic scrap is settled this week.