Merchant pig iron producers from Brazil’s Carajás region and Minas Gerais state have recently closed export deals with the USA after several weeks of weak activity in the North American market.
Carajás producers sold half the load of a Panamax vessel – approximately 35,000 tonnes – for around $480 per tonne cfr, which equates to some $465 per tonne fob.
This is up from a couple of deals closed last month with China for a little more than $450 per tonne fob, market participants told Metal Bulletin.
The shipment to the USA will be made in June, the sources said.
“Now that scrap prices are rising in the US market, we expect to get higher pig iron prices in the next deals, for shipment in July,” said a major producer in Brazil’s northern region of Carajás.
In Minas Gerais, in south-east Brazil, producers managed to sell 22,000 tonnes to the USA for about $455 per tonne fob, local sources said.
Shipment will also be made in June, they added.