Posted on 14 Nov 2018
Brazilian pig iron export prices have begun to flatten, affected by poor demand mainly from the US and Mexican markets. The start of the rainy season in the country at the beginning of November however could give some price support as production is reduced Kallanish learns from local market participants.
According to sources, the average pig iron export price has lowered by $5-10/tonne and now stands at $345-350/t fob Brazil.
“During the last two weeks, Brazilian pig iron producers have made some price corrections but maintained their export offers without big changes,” an international trader says. “In Brazil the rainy season is now beginning and iron ore production is set to fall. Domestic demand however is stable.”
Most mills have no availability of pig iron for export until January 2019, another local market source suggests. “No new transactions were heard in the last week. Brazilian mills could maintain the current pig iron levels for long, as they do not have enough material in stock. The market looks quiet ahead of an anticipated deceleration in demand in 2019,” a source adds.
Pig iron demand in the European market also lowered in recent weeks. According to international market participant, CIS pig iron offers have reached $370-375/t fob Black Sea.
