Posted on 26 Oct 2018
Brazilian pig iron export prices are once again stable after have fallen slightly at the beginning of October. Steelmakers saw pig iron output increase in September supported by strong domestic demand, Kallanish learns from local market participants.
According to sources, the average pig iron export price is at $350-355/tonne fob Brazil. This level could be short-lived however due to movement in the international market. US scrap price movements have begun to put some pressure on the Brazilian pig iron market, a local market source suggests.
“Demand from North America continues to be stable. Export prices however could go up in the coming weeks, as US raw material demand grows. The Mexican market meanwhile looks very quiet. Mexico has reduced pig iron imports from Brazil. It is understood the country has enough material in stock,“ an international trader says.
Brazilian pig iron production increased year-on-year in September, according to data issued by the local steelmakers’ association Instituto Aço Brasil (IAB). Pig iron output totalled 2.50 million tonnes during the month. This was an increase of 3.6% year-on-year and almost 7.7% more compared to August 2018.
Brazil pig iron exports nevertheless fell y-o-y for the fourth consecutive month in September. Shipments abroad during the period reached 187,030t or were -18.5% down compared to the same month of 2017, but 18.7% more than in August. Year-to-date, exports continued to fall by -19.5% compared to the same period of 2017, to 1.32mt.
The main export destination for Brazilian pig iron ore in the first eight months of 2018 was the US which took 34% of the country's total shipments. Holland was the second largest importer of Brazilian pig iron with a share of 19%, followed by Italy and Mexico both with a share of 12%.
