The Brazilian pig iron market faced uncertainty in June due to US tariffs

The price situation on regional pig iron markets in June was mixed. Whilst quotations fell in the Black Sea region and in India, pig iron prices in Brazil (according to Platts) stabilised at $495–500/t (FOB).

Brazil

According to Platts, over the past five weeks, prices for pig iron from south-eastern Brazil have fluctuated within the range of $495–500/t on an FOB basis. Export prices for Brazilian pig iron remained stable in June against the backdrop of the threat of US tariffs: market activity was suspended due to a high level of uncertainty regarding possible US tariff restrictions. At the same time, according to Kallanish, June prices for Brazilian pig iron rose by $15 to $495/t (FOB).

Negotiations are of paramount importance for future exports of Brazilian pig iron to the US, as this is a key export market. Last month, the country exported 161,000 tonnes of pig iron to the US (on FOB terms) at a price of $444/t. Between January and May, this volume had already reached 1.2 million tonnes. For the whole of last year, shipments totalled 3.4 million tonnes, or 83% of Brazil’s total pig iron exports.

As part of the negotiations between the two countries, discussions are planned regarding granting Brazilian pig iron an exemption from additional tariffs. Meanwhile, there is significant interest in Brazilian pig iron in the US due to its competitive price and its use by independent producers of charcoal, which enables CO₂ emissions to be reduced to almost zero.

Brazil is currently in active negotiations with the US Trade Representative (USTR). According to SteelOrbis, it is likely that Brazilian pig iron will be subject to a 25% import duty in the US, as the American side does not appear to be interested in reaching an agreement. The US authorities are expected to make a decision by 15 July.

Against this backdrop, most producers are stepping up sales due to fears that pig iron may fall under the new US trade regime. A decline in demand from the US will force Brazilian suppliers to redirect their pig iron to alternative markets, such as Europe.

The Brazilian pig iron market showed an upward trend in May. According to the Brazilian Steel Producers’ Association (IAB), pig iron production in May stood at almost 2.2 million tonnes, 7.5% higher than in April. Over the first five months of 2026, the figure fell by 0.3% year-on-year to 10.7 million tonnes.

Meanwhile, in May, pig iron exports rose by 10.5% month-on-month to 280,000 tonnes. This growth was driven by a resumption of exports to Europe, to which Brazil shipped 86,000 tonnes at $438 per tonne. For January–May this year, the figure rose by 8% year-on-year, reaching 1.6 million tonnes.

Turkey

In June, average pig iron prices (on a Black Sea FOB basis) fell under pressure from falling scrap prices and low demand. As of 20 June, they had fallen by $5 compared with the end of May – to $365/t on an FOB basis.

The Turkish pig iron market remains extremely volatile. According to the Turkish Statistical Institute (TUIK), pig iron imports into Turkey fell by 16% month-on-month in April this year (following a 42% month-on-month increase in March), to 201 thousand tonnes. Over the first four months of this year, pig iron imports into Turkey rose by 22% year-on-year to 812,000 tonnes. Russia was the largest supplier during this period, supplying 750,000 tonnes of pig iron (+42% year-on-year) with a market share of 91%.

Against the backdrop of volatility in pig iron imports, domestic production in Turkey has risen 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, this figure rose by 19% year-on-year to 4.5 million tonnes. This can be partly explained by low electricity prices, caused by heavy rainfall and increased utilisation of hydroelectric power stations.

China

According to SteelOrbis, domestic pig iron prices in China (including 13% VAT) stood at $424/t in June. In the first five months of this year, pig iron production in China fell by 3.1% year-on-year to 355 million tonnes. Meanwhile, in May, the figure rose by 3.2% month-on-month compared with April, reaching 73 million tonnes.

India

According to Metallplace, prices for pig iron on the Indian market fell by $10 in June to $405/t (FOB). Although India is not one of the key pig iron exporting countries, exports of this product have risen sharply since April this year due to high demand from the US and other countries. In April–May, the US became the key destination for Indian pig iron exports, with shipments totalling around 250,000 tonnes. This growth is attributed to competitive pricing compared with other exporters, a reduction in US tariffs on imports from India, and higher scrap prices, which have made purchasing pig iron more profitable.

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).