On March 30, SteelOrbis reported basic pig iron offers were being heard at $370-380/mt FOB Northern Brazil port and $365-370/mt FOB Southern Brazil (Rio).
According to sources, ex-Brazil pig iron offers to the US are firming up due to tight supply and high demand. During the US domestic buy-cycle, for week ending April 7, while shredded and heavy melt scrap prices moved down $25-35/mt in comparison to March settled prices, prime scrap prices showed resilience with only a $0-$10/mt price erosion. “Scrap order books were strong in the US across all grades. HMS and shredded scrap prices declined as export prices dipped, but prime scrap is not showing much of a price decline due to strong demand and tight industrial supply that is expected to continue for months to come,” a source said. As an alternate raw material, pig iron demand by US mills is expected to continue strong into the summer.
Brazil origin pig iron offer prices are presently at $380-390/mt FOB Northern port and $365-375/mt FOB Southern port. These prices reflect an increase of $10/mt from previously reported offer prices in the Northern region and an increase of $5/mt on the upper range of the Southern region.