SÃO PAULO Merchant pig iron producers from Brazils northern region of Carajás have closed an export deal with a Mexican buyer at $408 per tonne c.f.r., a well-placed source told AMM sister publication Steel First June 7.
The cargo of some 30,000 tonnes will be shipped in a Handymax vessel to the port of Veracruz, Mexico, in mid-July.
The buyer, a Mexican steelmaker that was not identified, carried out a tender process that also saw bids from Ukrainian producers, the source told Steel First.
The transaction was concluded at slightly less than $390 per tonne f.o.b., with a freight rate of nearly $20 per tonne.
This is higher than the $380 per tonne f.o.b. previously achieved in a sale to the United States at the end of May.
Most Carajás producers now have available cargo for shipment only in August.
The regions utilization rate has been below 30 percent for the past few months, with some 140,000 tonnes of pig iron produced monthly, Steel First has reported.
A version of this article was first published in AMM sister publication Steel First.