At least 18 independent pig iron producers in the Minas Gerais state suspended their production for 12 hours earlier this week, citing competition from China.
According to William Reis, a representative of the group and owner of one of the pig iron plants, the sector is affected by the entry of steel products at low prices in Brazil, primarily from China, which has reduced domestic market sales.
Reis stated that the sector faces challenges such as prices lower than production costs, a shortage of financial resources, and a lack of fiscal incentives. He added that the temporary suspension demonstrates the sector's unity.
Reis mentioned that if the situation does not improve, production may be halted for several days, potentially leading to the dismissal of workers in the Sete Lagoas region, where the plants are located.
Minas Gerais has an estimated 36 independent pig iron producers, which produced 3.778 million mt of pig iron in 2024. This includes 2.891 million mt of BPI grade, 414,000 mt of nodular grade, and 473,000 mt of foundry grade.