Brazilian pig iron export prices for the steelmaking grade in the southeastern state of Minas Gerais are now in a range of $345/mt to $355/mt, against $330/mt to $335/mt last week, CFR conditions to a port in the East coast of the US, with the difference reflecting higher FOB prices and roughly stable freight rates.
The nodular grade product is currently negotiated in a range of $385/mt to $395/mt, under the same conditions.
Sources tell SteelOrbis that higher FOB prices reflect an increased demand from Asia and the US, adding that the scenario is different from a few months ago, when producers in the southern and northern states were considering the temporary closure of blast furnaces due to the reduced margins achieved.
A report issued by the association of the pig iron producers in the northern state of Para mentioned that at least three pig iron producers are considering the restart of blast furnaces, one of which, Gusa Brasil, the former SIDEPAR, effectively restarted one blast furnace on December, 19, 2019.
In December, Brazil exported 320,600 mt of pig iron, of which only 16 percent from producers in the north of the country, comparable with an historical average of 45 percent.
