Brazilian pig iron market steadies, March exports rise

Posted on 15 April 2019

Source: Kallanish

The Brazilian pig iron market is likely to be stable in the lead-up to Easter, local producers and traders tell Kallanish. Brazilian pig iron export prices are not expected to move from the current levels in the next 10-15 days, as the country is short of material. Some producers are trying to increase their offers for June exports, but the average market price remains at $340-345/tonne fob Brazil.

”Prices in the domestic market have been largely stable due to an unchanged situation of no availability of pig iron for export,” an international market source comments.

New offers for shipments for the May-June period have not yet been reported. Buyers are waiting for more clarity in the US market and to see how the international scrap market will move, says a market participant. “The direction of Brazilian pig iron market will be more predictable after the Easter as new short-term supply contract should be confirmed,” he adds.

Brazil saw its pig iron exports rose year-on-year in March, according to Brazilian Ministry of Development, Industry and Foreign Trade (Mdic) data. The country shipped 186,940 tonnes, or 84.2% more on-year, and this was also 66.9% higher than February’s 112,010t. Pig iron exports in the first quarter were also 42.6% higher compared to Q1 2018, at 614,325t.

The main destination for Brazilian pig iron in the period was the US which took 52% of the country's total exports. Holland was the second-largest importer with a share of 25%, followed by Taiwan and the UK with shares of 10% and 5.6%, respectively.

Pig iron exports had a fob value of $64.5 million in March, 71.6% more y-o-y, while the Q1 export value was almost $227.1m, up 42.4% compared to the same period in 2018. The average pig iron export value year-to-date is $370/t fob or almost flat, Mdic confirms. 

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