Brazil exported 155,200 mt of pig iron in January, a 51.7 percent decline from December, reflecting chiefly exports to the US reduced to a mere 20,500 mt, against 166,800 mt in December, according to the ministry of development, Industry and foreign trade, MDIC.
The average FOB export price increased by 39 percent to $252/mt, pointing to the steelmaking grade exported at $183/mt and the foundry grade exported in a range of $260/mt to $289/mt, deals probably closed on November 2015.
The producers in the north of the country, focused on the production of the steelmaking grade product, exported 30,300 mt in January, against 250,000 mt in December, while the producers in the southeast, focused in the foundry grade product, exported 121,800 mt, 82 percent more.
Destinations other than the US in January were the EU (338 percent more at 84,500 mt), Argentina (7.3 percent less at 33,500 mt) and Asia (26 percent less at 15,000 mt).
A source from a major producer in the state of Maranhao told SteelOrbis that the reduced volume exported in January was chiefly due to shipments brought forward to December and that volumes should increase in February. He added that he is exporting the steelmaking grade product at $195/mt, CFR conditions, with logistics costs to the US, Mexico or Argentina estimated at $10/mt, both figures stable over two months.
Another source, in the state of Minas Gerais, told SteelOrbis that he is exporting the foundry grade product in a range of $220/mt to $230/mt, FOB conditions, against $210/mt one month ago.
In the domestic market he is selling the product at BRL 965/mt ($245/mt), FOB full taxes except IPI, against BRL 918/mt ($232/mt) FOB one month ago.
He mentioned that the demand for the foundry grade product has improved and his portfolio of orders is complete until June, but prices are not sufficient to provide for a sustainable operation, merely covering production costs under the current levels.
1 USD = BRL 3.95 (February 22)