Brazilian pig iron market awaits China's return

Posted on 12 October 2020

Brazilian pig iron export offers slipped at the beginning of the month, mainly affected by changes in the international market, Kallanish notes.

According to market participants, global prices have been driven down mainly by reduced Chinese demand.

“Levels fell by $10-15/tonne at the beginning of October as results of China's Golden Week holidays,” a market participant says. “However, with the returning of Chinese demand, prices should be back close to end-September values.”

According to another source, large companies are adapting their products to the new market reality. “Pig iron producers in Brazil are taking advantage of the good post-coronavirus crisis momentum of the international market to improve their output capacities.”

In line with the return of Chinese demand, large Brazilian companies are once again negotiating higher transaction levels, a source comments. The availability of pig iron for exports, however, remains limited in Brazil until December 2020-January 2021, he adds.

According to market participants, the average pig iron export price is now reported at $350-355/tonne fob Brazil.

The latest data from the Brazilian Ministry of Development, Industry and Foreign Trade (Mdic) show that Brazil decreased pig iron exports by -7.2% on-year in September to 315,000 tonnes.

Source : Kallanish