Raw Material Prices

Brazilian pig iron prices rise as US buyers face limited supply options

Written by Stephen Miller

March 22, 2024

Prices for pig iron in Brazil have increased despite efforts by US-based buyers to lower them. It has been confirmed that a US buyer has purchased a 55,000-metric-ton (mt) cargo, presumably for May shipment, at $430/mt FOB South Brazil. The Brazilian producers resisted offers at $420/mt and this resulted in the acceptance of their asking price of $430. According to industry sources, the freight to the US was pegged at $27/mt for a CFR price of $457/mt. This cargo of pig iron has a Phos. level of 0.15% max.   

Shortly after this occurred, another cargo changed hands at $445/mt FOB, resulting in a delivered price of $467/mt. This cargo has a lower Phos. content of 0.10% max as opposed to 0.15% max, and it originates from North Brazil. However, other US buyers claim they are now being offered pig iron with 0.15% Phos. max at $445/mt CFR U.S. ports.     

The next availability from Brazil is now reportedly for June shipment. It is unclear at this point if Ukraine will continue to ship pig iron to the US. Producers in that region have cited increased logistical costs due to the conflict there. They are considering using their iron production to convert into billets, which may be more profitable. If this happens, Brazil will become the only supplier to the US, unless pig iron prices are raised significantly.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40+ years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.

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