According to newly published data from Kallanish, average pig iron prices across most regional markets increased by $10–15 per ton in May. The most notable dynamics were observed in Brazil, where export quotations rose to $480/t FOB compared to $465/t in April. Platts assessments for material from southeastern Brazil were even higher, reaching $490–500/t FOB. For the metallurgical sector, this trend is highly significant, as pig iron remains a primary raw material for steelmaking, directly impacting the cost of rolled steel products.
Brazilian Pig Iron Strengthens Positions in Foreign Markets
The rise in Brazilian pig iron prices comes on the heels of shortages in the US market and strong domestic demand. An additional constraint is the limited supply within Brazil itself, as production has not yet fully recovered from the rainy season. According to SECEX, Brazilian pig iron exports decreased by 7% month-on-month in April, dropping to 267,000 tons. Nonetheless, the US remains the key destination, with Brazil shipping 259,000 tons there last month at an average price of $428/t FOB.
The European market also presents new opportunities for Brazilian producers. Demand in the EU is supported by the implementation of the CBAM mechanism and the ban on Russian pig iron imports into the bloc. Another critical factor is the provisional application of the Mercosur–EU trade agreement, which took effect on May 1. Since pig iron is exempt from import duties, Brazilian suppliers gain a competitive edge in the European direction.
Impact on the Rolled Steel Market and Solutions from winox.ua
Rising pig iron prices directly affect the cost of steel production, thereby driving up the prices of finished rolled metal products for industrial consumers. For Ukrainian manufacturers and processors, this underscores the need for careful procurement planning, reliable lead times, and locked-in commercial terms. Companies handling large volumes of structural steel, stainless steel products, and mechanical engineering components are particularly sensitive to these changes.
In this volatile market environment, winox.ua helps businesses mitigate risks associated with raw material price fluctuations. The company guarantees stable supplies of rolled steel, stainless steel, and non-ferrous metals, focusing on price consistency and predictable logistics. For clients, this is vital not only from a purchasing economics perspective but also for maintaining strict production schedules. An additional advantage is our selection of certified products that meet modern industrial standards.
Turkey and the Black Sea Region Remain Volatile
On a Black Sea FOB basis, average pig iron prices rose by $8 in May, reaching $370/t. This upward trend was mostly visible towards the end of the month, as a stronger ruble and weaker overall demand initially held the market back. According to Kallanish, Russian offers exceed $410/t CFR, with freight costs estimated at $25–30 per ton. At the same time, the current break-even production level in Turkey suggests import prices should not exceed $390/t CFR.
Other Regions and Medium-Term Outlook
In other regional markets, prices remained relatively stable throughout May. In China, domestic pig iron prices, including a 13% VAT, hovered around $426–427/t. In India, according to Metallplace, merchant pig iron quotes rose by $15 to $415/t. This supported demand for Indian products and allowed the country to enter the Turkish market with shipments of 51,000 tons in the first quarter.
The global picture remains mixed: strong demand in the US and the EU supports prices, while certain Asian markets show greater stability. Global pig iron production in January–April declined by 1.6% year-on-year to 456 million tons. China, India, and Japan remain the largest producers, though their performance dynamics vary significantly. For industrial buyers, the key task remains early procurement planning and partnering with suppliers capable of ensuring quality, timelines, and transparent delivery terms.