A source from a major pig iron producer in the southeastern state of Minas Gerais told SteelOrbis that his last sale deal was closed at $210/mt for the foundry grade product, FOB export conditions, comparable to $230/mt in late November 2015.
The source mentioned that during 2015 his exports were in average of 13,000 mt per month, but in a downward trend resulting in only 3,000 mt exported in December, a decline which in his view reflects reduced demand for the foundry grade product and from consumers in the EU.
He said that in the domestic market, the company is selling the foundry grade product at BRL 918/mt ($224/mt), ex-works, full taxes except IPI, against BRL 1,040/mt in late November, adding that he sold domestically a mere 1,300 mt of the product in December, compared to a peak of 3,900 mt sold in June 2015.
Meanwhile, a producer of the steelmaking grade pig iron, also in Minas Gerais state, told SteelOrbis that he is exporting the product at $170/mt, FOB conditions, comparable to $190/mt in early December 2015.
In December, Brazil exported the steelmaking grade product in average at $173/mt and the foundry grade product at $217/mt, both FOB conditions, according to the ministry of development, industry and foreign trade, MDIC.
1 USD = BRL 4.09 (January 25)