A source from an independent pig iron producer in the Brazilian southeastern state of Minas Gerais told SteelOrbis that he is closing deals for the export of the steelmaking grade product at $305/mt, against $307/mt two weeks ago. The price refers to CFR conditions to a port in the US East coast, with the difference reflecting minor oscillations in FOB terms and freight rates.
According to the source, a small cargo of the nodular grade product was exported at $350/mt, also CFR conditions US East coast. The source mentioned that the low prices are forcing many producers in the state of Minas Gerais to idle blast furnaces, due to the low operational margins.
In October, Brazil exported 321,600 mt of pig iron, against 275,700 mt in September. The main destinations of September were the US (171,300 mt at $304/mt), followed by China (76,600 mt at $301/mt), Italy (38,700 mt at $340/mt) and Spain (13,200 mt at $387/mt), all FOB conditions, with different quality grades and price deals probably closed in August. Smaller volumes were shipped to the Netherlands, Thailand, Vietnam, the UK, Sri Lanka and Taiwan.
