Exports of pig iron by Brazilian independent producers reached 266,400 mt in September, a 68.3 percent increase from August, according to the country’s minister of development, industry and foreign trade, MDIC.
Exports by the producers in the northern states of Para and Maranhao went up by 104.8 percent to 150,600 mt, an upswing reflecting the return to exports of the producers in Para with 93,200 mt, versus no exports in August, while exports from the producers in the southeastern states of Minas Gerais and Espirito Santo went up by 36.7 percent to 115,800 mt.
The average FOB port export price went down by 6.1 percent to $390/mt, pointing to the steelmaking grade product exported in a range of $325/mt to $384/mt, while the foundry grade product was exported in the $423/mt to $455/mt range.
A major producer of the foundry grade product in Minas Gerais state told SteelOrbis that its last deals for export of the foundry nodular product were closed in the $450/mt to $480/mt range, FOB port, against $453/mt to $473/mt three weeks ago.
Its last sales of similar product in the domestic market were closed at BRL1,330/mt to $1,350/mt ($550-$559/mt), stable in BRL terms but slightly reduced in US dollar terms due to the devaluation of the BRL.
A small producer of the steelmaking grade product in Minas Gerais state told SteelOrbis that its last export deal was closed at $375/mt, FOB port, against $380/mt three weeks ago, while its last domestic sale was closed at BRL 928/mt ($386/mt), FOB plant, ex-taxes but including PIS-Cofins, against BRL 900/mt three weeks ago.
He source said that the demand from the domestic market is showing a consistent reduction over the last months, forcing its operations to run at half capacity, adding that its historical ratio of 70-30 for exports-domestic sales is now set at 80-20.
The main destinations of the pig iron exports during August were the US, up 41.2 percent to 161,200 mt, the EU, increased threefold to 90,000 mt, and Asia, up 5.4 percent to 14,200 mt.