A source from a pig iron producer in the north of Brazil told SteelOrbis that he is selling the steelmaking grade product at $380/mt, CFR conditions to ports in the East coast of the US, considering ocean freight rates in the average level of $10/mt.
He mentioned that the current price compares with $314/mt FOB in February. The current increase is attributed to reduced production in the North region due to the shortage of charcoal, which is used as reductant in the production process—substantial rainstorms affecting the region over the last few weeks have reduced charcoal supply.
Another source from a producer in the Southeast region said he is selling the foundry nodular grade product in average at $390/mt, FOB conditions, adding that he has recently exported a small cargo of such product at $413/mt, FOB conditions.
In March, Brazilian independent pig iron producers exported 212,600 mt, 10 percent less than in February, at an average FOB price increased by 5.7 percent to $313/mt, FOB conditions, with price deals probably closed in February.
The most important destinations were the US (116,200 mt at $315/mt), the EU (50,400 mt at $307/mt) and Asia (41,000 mt at $322/mt, of which 38,800 mt at $321/mt to Taiwan), all FOB conditions.
