New export deal adds pressure on domestic pig iron prices in Brazil

The second successive export deal for 50,000 tonnes of pig iron from Brazil’s south-eastern state of Minas Gerais is expected to put pressure on domestic prices for the scrap substitute, sources told Steel First.


Domestic prices for merchant pig iron have been stable at around 740 Reais ($313) per tonne ex-works over the past few months in Minas Gerais, but the level may rise in the near future on lower supply and the devaluation of the Brazilian currency, the Real.
“Producers will have more bargaining power,” one local trading source said on Thursday August 29.
A second source agreed.

“We’re talking about 100,000 tonnes sold within one month – a volume that won’t be...

Published

Juan Weik

August 29, 2013

20:55 GMT

São Paulo