Brazilian pig iron export prices have surged due to global recovery and increased demand

Brazil's pig iron export prices have increased by $5-10/tonne in the last ten days due to the recovery of global raw materials markets. Two fresh shipments to the US, totaling 55,000 tonnes each, preceded an expected price upward adjustment in the North American scrap market.

Demand for Brazilian pig iron is expected to continue to improve, as the value of scrap in the US is increasing, and China's restart of purchases from Brazil could trigger an increase in offers. The material price should be much higher than $435/t to offset the exchange rate and the impact of the rainy season in Brazil. The fair value today would be between $480-500/tonne, close to March's level during the last rainy season. Brazilian average pig iron export prices are currently at $425-430/tonne.