Prices on regional pig iron markets fell in the first half of July

The price situation on regional pig iron markets in the first half of July showed a generally downward trend. On a Black Sea basis, quotations fell in India and China, whilst pig iron prices in Brazil (according to Platts) stabilised at $495–500/t (FOB) pending a decision on the exemption of pig iron from the new US tariffs.

Brazil

A key development for the market was the inclusion of Brazilian pig iron on the list of exemptions from the 25% US import tariff, which came into force on 22 July. The US excluded pig iron as this could have led to supply disruptions given American producers’ reliance on pig iron imports from Brazil. Over the past year, shipments totalled 3.4 million tonnes, representing 83% of Brazil’s total pig iron exports, or around 60% of the volume of pig iron imported by the US in 2025.

In the first half of July, the pig iron market in Brazil was in a state of uncertainty: whilst awaiting a decision on the introduction of tariffs, market participants acted cautiously and no new deals were concluded. According to Platts, over the past seven weeks, prices for pig iron from south-eastern Brazil have remained stable in the range of $495–500/t on FOB terms.

Overall, pig iron exports from Brazil in June rose by 7.6% compared with May, reaching 301.6 thousand tonnes. The main export destinations were the US – 188.5 thousand tonnes at $479 per tonne – and Europe – 82.8 thousand tonnes at $455 per tonne.

Turkey

In the first half of July, average prices for pig iron (on a Black Sea FOB basis) fell under pressure from falling scrap prices and low demand. The market was sluggish, as buyers and sellers had differing views on current fair prices. Turkish buyers pushed for lower prices for Russian pig iron against a backdrop of weak demand for rolled steel. As a result, as of 20 July, prices had fallen by $10 compared with the end of June – to $355/t on an FOB basis.

Performance in the Turkish pig iron market remains extremely volatile. According to the Turkish Statistical Institute (TUIK), in May this year, pig iron imports into Turkey fell by 23% month-on-month (following a 16% month-on-month decline in April) to 252,000 tonnes. Over the first five months of this year, pig iron imports into Turkey rose by 15% year-on-year to 1.1 million tonnes. Russia was the largest supplier during this period, shipping 941,000 tonnes of pig iron (+40% year-on-year) with a market share of 88%. Over the same period, Ukrainian pig iron ranked second in the Turkish market with a 5.7% share, whilst its import volume rose by 38.6% – to 61,000 tonnes.

Amid volatility in pig iron imports, domestic production in Turkey rose sharply. According to WorldSteel, pig iron output in May increased by 25% year-on-year to 0.93 million tonnes. Over the first five months of this year, the figure rose by 19% year-on-year – to 4.5 million tonnes. This can be partly explained by low electricity prices, which were caused by heavy rainfall and increased utilisation of hydroelectric power stations.

Europe

The Italian pig iron market is stagnating due to high international prices and weak domestic demand. Producers are holding their prices steady (excluding CBAM costs), whilst steelworks and foundries are minimising their purchases, selecting pig iron solely on the basis of technical requirements and quality parameters. Plants are actively switching to scrap metal, which has become more competitive following the fall in prices.

China

According to SteelOrbis, domestic pig iron prices in China (including 13% VAT) fluctuated between $422 and $431 per tonne in the first half of July. In the first six months of this year, pig iron production in China fell by 2.8% year-on-year – to 427 million tonnes. Meanwhile, in June, this figure fell by 1.3% month-on-month compared with May, to 72 million tonnes.

India

According to Metallplace, prices for pig iron on the Indian market fell by as much as $30 in the first half of July, to $375/t (FOB). Prices fell against the backdrop of efforts by US buyers to lobby for an exemption for Brazilian pig iron. At the same time, demand for Indian pig iron has risen sharply over the last few months, driven by attractive prices compared with other exporters, a reduction in US tariffs on imports from India, and lower freight rates.

At the same time, India has been tapping into new export markets. In the first five months of this year, the country became a new supplier to Turkey, shipping 51,000 tonnes of pig iron to that country and ranking third among exporters with a 4.7% market share.

As previously reported, global pig iron production in January–May 2026 fell by 2.8% compared with the same period in 2025, to 569 million tonnes. The largest pig iron-producing countries for this period were China – 354.7 million tonnes (–3.1% year-on-year), India – 66.5 million tonnes (+4.4% year-on-year) and Japan – 24.25 million tonnes (–1% year-on-year).