In Brazil, the price of pig iron of the foundry nodular grade is fluctuating between $440/mt and $460/mt, with average of $455/mt, FOB export, a major producer in the southeast told SteelOrbis.
The figure represents a reduction of $10/mt from one month ago, the source said, adding that in the domestic market the price was slightly reduced (1.3 percent) to BRL1,278/mt, ex-works, no taxes but including Pis-Cofins levies, which in $ terms represents a reduction of 5.4 percent to $504/mt, reflecting the devaluation of the BRL vis-à-vis the $.
Meanwhile, a small producer of the steelmaking grade product, also in the southeast, told SteelOrbis that his last export sale was closed at $345/mt, FOB port, down 8 percent from one month ago, while its last domestic sale was closed ex-works, no taxes but including PIS Cofins levies at BRL830/mt, stable in one month but reduced by 15 percent in $ terms over the period.
With a combined production capacity estimated at 10 million mt per year, Brazilian independent pig iron producers are divided in two major groups: those in the southeastern region are located in the states of Minas Gerais and Espirito Santo, while those in the northern region are located in the 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.
Due to the lackluster performance of the steel industry, the producers of the steelmaking grade are operating at 30 percent of their capacities, while the producers of the foundry grades remain operating close to full capacity.