A pig iron producer in the Brazilian southeastern state of Minas Gerais is selling its steelmaking grade product in the domestic market at BRL840/mt ($374/mt), FOB, no taxes, but including PIS-Cofins, an industry source told SteelOrbis.
The price compares to BRL850/mt one month ago, confirming a tendency for the reduced demand for the product from the local steel industry.
For export, the last sale of the company was closed at $420/mt, C&F US port in the Eastern coast, roughly equivalent to $380/mt FOB Brazilian port, against $384/mt one month ago.
The few pig iron producers in Minas Gerais state, that remain dedicated to the steelmaking grade product, are reportedly operating around 30 percent of their combined capacity, squeezed by the low margins resulting from the low pig iron price, vis-à-vis the high iron ore and charcoal prices, which historically represent 75 percent of the sector’s operational costs.