Pig iron prices rose by $20-40 per ton in February in certain markets

In February, average prices for Indian and Brazilian pig iron rose by $20–40/t. The increase was driven by seasonal factors and growing demand in Turkey, as well as the impact of CBAM costs on the market structure.

Brazil

Statistics for the Brazilian pig iron market show mixed trends. According to the Brazilian Steelmakers Association (IAB), pig iron production in January amounted to 2.2 million tonnes, down 2.7% from December. At the same time, pig iron exports in January grew by 49% to 408,000 tonnes after falling by 23% month-on-month in December.

According to Kallanish, Brazilian pig iron prices rose by $20 in February and remained at $430/tonne FOB throughout the month. In early February, prices rose under pressure from suppliers and due to the rainy season, a traditional factor driving up prices and forcing many Brazilian producers to suspend operations for several weeks.

At the end of the month, uncertainty arose in the market due to a court ruling to cancel the tariffs imposed by President Trump of up to 50%. However, they were immediately replaced by a global tariff of 15%. The market uncertainty proved to be short-lived. In January of this year, 307,000 tonnes of Brazilian pig iron were delivered to the US at an average price of $388/tonne, which probably reflects the prices of deliveries in November 2025.

Thanks to low CBAM payments, Brazil became the sole supplier of pig iron to Italy. According to Kallanish, at the end of February, prices for Brazilian pig iron in Italy were approximately $10/t higher than in the middle of the month. In mid-February, several deals were recorded at $450/t CFR, excluding CBAM costs ($44/t). Market participants expect prices to continue to rise in the coming weeks. In January, Brazil supplied 65,000 t of pig iron to Europe at an average price of $413/t.

It is noteworthy that due to the recent decline in CO2 prices in the EU ETS by approximately €15/t, the cost of Ukrainian pig iron, taking into account CBAM costs, has once again become acceptable to buyers. Recall that recent transactions with pig iron from Ukraine were at $460/t on CFR terms, excluding CBAM fees.

Black Sea market

Russian pig iron exporters continue to face pressure from an overvalued currency and limited export opportunities. Average prices for pig iron (Black Sea FOB basis) rose by $5 to $340/t in February. According to Kallanish, some suppliers have begun to look for alternative markets amid low sales of rolled metal in Turkey, the largest market for Russian pig iron.

Other markets

In other regional markets, pig iron prices rose at different rates. Domestic pig iron prices in China (including 13% VAT) remained at $415/t throughout February.

According to Metallplace, prices for pig iron on the Indian market rose by $40 to $415/t last month. Since the beginning of the year, Indian pig iron prices have risen by $73/t. Indian suppliers raised prices due to CBAM in the EU and increased supplies to Turkey: at the end of last year, pig iron from India accounted for 5% of the market there, with 110,000 t (a threefold increase year-on-year).

As previously reported, global pig iron production in January 2026 fell by 6% y/y – to 110.8 million tons. The largest pig iron producing countries in January were China with 65.9 million tons (-10.9% year-on-year), Japan with 10.3 million tons (+103.8% year-on-year), and India with 8.5 million tons (-35% year-on-year).