A source from a major independent pig iron producer in the Brazilian northeastern state of Maranhao told SteelOrbis that the sector is operating in the state at 40 percent of its production capacity, while in the neighbor state of Maranhao the rate has already dropped to an estimated 15 percent.
According to the source, the downturn reflects the reduced demand from the steel industry, as in the north the sector is entirely dedicated to the production of the steelmaking grade, chiefly for export to the US.
The source mentioned that its most recent deal was closed for an export to the US at $340/mt, CFR conditions, adding that he is struggling to maintain the price for the next shipments, as clients are reluctant to close new deals at prices higher than $300/mt, CFR conditions.
During December, the exports of pig iron to the US from the independent producers in the states of Maranhao and Para reached 209,300 mt, at an average FOB price of $375/mt, 4 percent lower than in November.