Brazilian pig iron export prices are continuing unchanged, but shipments abroad have fallen, affected by poor demand mainly from the US market during August, Kallanish learns from local market participants.

According to sources, the average pig iron export price is at $385/tonne fob Brazil at the end of August.

“During the last two weeks, Brazilian pig iron producers have maintained their export offers stable, while focusing on the domestic market,” an international trader says. “Most mills have no availability of pig iron for export until October, so they try to maintain the current levels. The devaluation of local currency however could bring a downward price adjustment soon,” another local market source suggests. No new transactions were heard in the last week, he adds.

Brazil saw its pig iron exports fall for the third consecutive month year-on-year in July, according to the latest data issued by the local steelmakers’ association Instituto Aço Brasil (IAB). Shipments abroad in the period reached 107,320 tonnes. This was down by -52.5% year-on-year, but was 2,300t more than in June. During January-July 2018 exports were down by -23.1% compared to the same period of 2017 at 981,579t.

The country`s pig iron production was almost flat y-o-y in the first seven months of 2018 at 16.22 million tonnes (+0.5%). In July alone, Brazil produced 2.42mt of pig iron, or 4.9% more compared to the same month of last year.