Exclusive Average prices for Brazilian pig iron fell by $10/t in June

Exports from Brazil to the US rose sharply amid expectations of tariffs and rising scrap prices

The downward trend in prices on regional pig iron markets continued in June. Average prices for Brazilian pig iron on FOB terms fell last month from $420/t at the end of May to $410/t (as of June 20).

According to Kallanish, export prices for Brazilian pig iron fluctuated between $405 and $415/t throughout June. At the same time, suppliers expect a slight increase in prices in July due to a revival in trade with the US. Brazilian pig iron exports in June increased by 32% to 358,000 tons. The lion’s share of June shipments went to the US – 303,000 tons at a price of $428/ton.

This sharp increase is due to the fact that American buyers expect the introduction of tariffs on imports from Brazil and an increase in scrap metal prices in the US in the near future. It is obvious that high exports of pig iron to the US will continue in July, as US President Donald Trump has announced his intention to impose 50% tariffs on goods produced in Brazil from August 1. However, given the inconsistency of the US president’s decisions, this statement should be viewed as a “call for dialogue and compromise” rather than a final decision.

The situation on the Turkish market is somewhat different. According to TUIK, imports of pig iron to Turkey in May increased by 83% y/y to 245.4 thousand tons. As before, Russian pig iron dominates the market (72% of the market), with imports in May increasing by 81% y/y to 176.2 thousand tons. The share of imports from Russia is likely to be even higher, as 25,000 tons of pig iron from Kazakhstan may have been imported under altered documents. Russian pig iron is supplied at $360/ton, while the average import price is $370/ton.

The increase in Russian pig iron supplies to the Turkish market was expected, as Russia has already exhausted its quota for supplies to the EU in 2025, which led to a reorientation of supplies to Turkey and other markets.

At the same time, in May, cast iron supplies to the Turkish market from Ukraine rose sharply, amounting to 44.2 thousand tons at a price of $413/t. The average price of cast iron on FOB Black Sea terms in June (as of the 20th) fell by $5/t to $320/t compared to the end of May.

It should be recalled that at the end of May, average prices for Brazilian pig iron fell by $30/t, which was associated with the likely introduction of US import tariffs and the imposition of a 10% duty on financial transactions.

As GMK Center reported earlier, global pig iron production in January–May 2025 decreased by 0.3% compared to the same period last year, to 583.3 million tons. The largest producers of pig iron during this period were: China – 362.7 million tons (0.1% y/y), India – 63.6 million tons (+7.5% y/y), and Russia – 24.9 million tons (-1% y/y).