In May, the United States remained Brazil’s largest export destination, receiving 161,200 tons of pig iron. Exports to European countries totaled 86,400 tons, while shipments reached 27,300 tons to Mexico, 5,000 tons to Asia, and limited volumes to South American countries.
In terms of export prices, average FOB prices were reported at $444/ton for shipments to the United States and $438/ton for exports to Europe and Mexico. Shipments to Asia were reported to have achieved higher price levels.
Market sources indicate that a significant portion of May shipments was based on sales contracts concluded in March. During that period, basic pig iron (BPI) prices traded below $475/ton, while foundry-grade pig iron prices remained above that level.
Most of Brazil’s production and export activities were carried out by producers located in the states of Minas Gerais and Espírito Santo, while limited volumes were also shipped from Mato Grosso do Sul.
Industry sources believe that Brazilian pig iron exports could maintain their strong performance in the coming months if demand in the European market continues to recover. The May data highlight that the revival of European demand remains an important support factor for Brazilian producers.
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