Brazilian exports of pig iron totaled 342,100 metric tons (mt) in July, against 301,600 mt in June, an increase of 14 percent, while exports to the US jumped 55 percent, according to data from the foreign trade secretariat, SECEX, of the ministry of development, industry and foreign trade.
The increase was mainly driven by the significant rise in exports to the US, which analysts linked to uncertainty in early July over whether Brazilian pig iron would be exempt from higher tariffs proposed by US authorities. On July 15, the Office of the US Trade Representative (USTR) announced that Brazilian pig iron would indeed be exempted from 25 percent tariffs.
The destinations in July were the US (291,300 mt at $468/mt), Europe (45,200 mt at $490/mt), Asia (5,200 mt at $548 mt), and Argentina (400 mt at $771/mt), FOB conditions.
Such prices were probably negotiated in May, with indications of the BPI grade price below $490/mt, and the foundry grade price above that level.
The exports were from producers in the southeastern states of Minas Gerais and Espírito Santo (251,000 mt), Pará, in the north (59,100 mt), and from Mato Grosso do Sul (32,000 mt), in the central-western region of Brazil.
