The supply of Brazilian pig iron exports decreased at the beginning of the month, mainly due to changes in the international market in connection with the Chinese Golden Week holidays.
According to market participants, world prices have declined mainly due to lower demand in China.
“Levels fell $ 10-15 per tonne in early October as a result of China’s Golden Week holidays,” a market participant said. “However, with the return of Chinese demand, prices should be back around the end of September.”
According to another source, large companies are adapting their products to new market realities. “Pig iron producers in Brazil are taking advantage of the strong international market dynamics following the coronavirus crisis to increase their production capacity.”
The source notes that due to renewed demand from China, large Brazilian companies are again in talks to increase transaction volumes. However, the availability of pig iron for export in Brazil remains limited until December 2020 – January 2021, he adds.
According to market participants, the average export price for pig iron is now $ 350-355 per ton in Brazil.
The latest data from the Brazilian Ministry of Development, Industry and Foreign Trade (Mdic) show that Brazil reduced its pig iron exports by -7.2% in September to 315,000 tons.