A major pig iron producer in the state of Minas Gerais told SteelOrbis that over the last month he did not close any significant export sale of the product, adding that they could halt the operation of a blast furnace in January, should the situation persist along December.
He mentioned that they already have one of their two blast furnaces idled, and that the second blast furnace is in operation in the hope of positive result from ongoing negotiations for a long term supply deal, involving a client abroad.
The base FOB price for the negotiation is $230/mt, the same in two months, a price that in his view ascribes a reduced margin, so they have no flexibility in the negotiation.
In the domestic market, tonnages sold have declined significantly, but prices were maintained over two months at BRL1,040/mt ($277/mt), ex-works, full taxes except IPI.
In October, Brazil exported the steelmaking grade product at $202/mt and the foundry grade product at $257/mt, FOB conditions, with price deals probably closed in August.
USD = BRL 3.75 (November 25)