On August 25, SteelOrbis reported ex-Brazil basic steelmaking pig iron deals to the US at $350/mt FOB Southern Brazil port and $370/mt FOB Northern Brazil port, which translated to $375-380/mt CFR US port. As for offer prices, ex-Brazil pig iron offers to US were reported at $375-390/mt CFR US port from Brazil.
According to sources, a recent ex-Brazil basic pig iron deal was transacted at $390/mt CFR US port which translates to approximately $380/mt FOB Northern Brazil port. Offers are now heard at $390-400/mt CFR from the northern region. From the southern region, pig iron offers have increased to $360-365/mt FOB Southern Brazil port or approximately $385-390/mt CFR US port.
A source noted that the increases in US domestic scrap prices along with the desire for higher grade feedstock may be playing a factor in the demand for pig iron. The use of higher scrap grades, HBI, DRI and pig iron allows mills to use fewer electrodes, which are costly and on limited supply. Additionally, as US crude steel production increased in the last several months, the composition of the feedstock may be an important cost consideration for some mills going forward. The source added that BOF and EAF mills have different considerations, but that tight supply and high domestic prices for prime scrap grades are likely contributing to the pig iron buys. US domestic pig iron prices are expected to increase slightly in September, according to a Midwest source.