Brazilian Pig Iron Prices Weaken as Global Market Shifts in August

Brazilian Pig Iron Prices Fall to $400–405/t in August

Brazilian pig iron prices saw a slight decline in August, slipping to $400–405 per tonne FOB, compared to July’s $400–410/t range. The market remains subdued despite the U.S. exempting pig iron from recent tariff measures. Instead of rallying, buyers in key markets stayed cautious, particularly in the United States, where cheaper Ukrainian pig iron filled the gap.

The exemption from U.S. tariffs—announced on August 7—initially appeared to support Brazilian exporters. However, the benefit proved short-lived. U.S. buyers had already stocked up in July, anticipating the worst. Brazilian exporters front-loaded shipments, pushing July exports up by 57% to 555,000 tons. But by August, those volumes dropped steeply to 288,400 tons, showing the export market’s volatility.

Meanwhile, Brazil’s pig iron output dropped 2.3% in July to 2.18 million tons. The decision to scale back production was linked to uncertainty around U.S. trade policy. Brazilian exporters also began redirecting shipments to Europe and Asia at higher FOB prices—$437/t and $502/t respectively.

Global Pig Iron Market Trends: Black Sea, Turkey, and India

The Black Sea pig iron market remains virtually dormant, with FOB prices stuck at $311/t. Weak demand from traditional buyers like Turkey and India continues to suppress activity. With few takers in the region, Russian pig iron is now being funneled toward Far East markets.

Turkey’s pig iron production is down sharply—falling 12.5% in the first seven months of 2025 to 5.3 million tons. July alone saw a 9.3% year-on-year decline. However, imports surged 33% month-on-month to 270,100 tons. Much of this increase stems from Russia, which exhausted its European Union quota and is now rerouting volumes to Turkey.

India, too, is seeing falling pig iron prices. August prices ranged from $348 to $350/t, marking a 6% or $23 drop from July levels. Lower demand and ample supply continue to exert downward pressure across Asian markets.

SuperMetalPrice Commentary:

Brazil’s pig iron sector finds itself in a transitional phase. Despite escaping U.S. tariffs, the anticipated rebound did not materialize, as buyers had already secured volumes in advance. The redirection to Asia and Europe signals a need for Brazil to diversify beyond U.S. reliance. Meanwhile, weak demand in Turkey, stagnation in the Black Sea, and falling Indian prices underscore broader market fragility. Until global demand stabilizes, particularly in construction and steelmaking sectors, pig iron prices are unlikely to stage a strong recovery.