A major independent pig iron producer in the state of Minas Gerais told SteelOrbis that he is exporting the foundry grade product in a FOB price range of $415/mt to $428/mt, comparable to $440/mt to $472/mt one month ago.
He added that in the domestic market the reduction was less intensive, from BRL1,260/mt to BRL1,250/mt ($481/mt to $460/mt), ex-works, all taxes except IPI.
According to the source, in spite of the price decline, the producers of the foundry grade product remain operating close to full capacity, while the producers dedicated to the steelmaking grade are operating at less than 30 percent of their capacities.
A fresh report by the pig iron association Sindifer indicates that the total production of the sector in Minas Gerais has reached 216,000 mt in December, the equivalent to 31 percent of the capacity in the state, with only 35 out of 97 blast furnaces in operation.
With a combined production capacity estimated at 10 million mt per year, the Brazilian independent pig iron producers are divided in two major groups: those in the southeastern states of Minas Gerais and Espirito Santo, and those in the northern states of Para and Maranhao.
Those in the north are focused on the production of the steelmaking grade product for export while those in the southeast produce both steelmaking and foundry grade products, for export and local sales.
Only four out of more than 80 independent producers in Brazil are dedicated to the foundry grade pig iron.