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 in a range of $315/mt to $325/mt, against $309/mt one month ago. The price refers to CFR conditions to a port in the US East coast, with the difference reflecting higher FOB prices and stable freight rates.
According to the source, the higher prices derive from reduced production, as some pig iron producers in the state of Minas Gerais have suspended production when the FOB price declined last month to less than $280/mt.
In November, Brazil exported 250,000 mt of pig iron, against 321,600 mt in October. The main destinations of November were China (72,700 mt at $280/mt), the Netherlands (51,000 mt at $380/mt), Mexico (40,400 mt at $320/mt), the US (32,900 mt at $285/mt), Turkey (34,600 mt at $296/mt) and Italy (1,000 mt at $330/mt), all FOB conditions and different quality grades, with price deals probably closed in September. Small volumes were shipped in November to Thailand, Vietnam, Taiwan, India, Pakistan, Argentina and Australia.