Published by:Christian Willbern<>
7 Apr 2025 @ 20:05 UTC

Newly enforced US tariffs and the US domestic ferrous scrap trade stalled alternative irons market activity in the week to Monday April 7, sources told Fastmarkets.

[Pig iron] producers are waiting for more information about the tariffs… [we are] waiting for the development of the April scrap market, which looks softer than expected, a Brazilian source said.
The Trump administration’s10% universal tariffs, enacted on Saturday April 5, created uncertainty in the market, leaving participants unsure as to who will bear the additionally incurred costs.
Brazilians can’t afford not to sell — the US is the terminal market for them. Pig iron prices could taper a bit, but it’s a matter of who’s going to win the battle, a US source said.
I don’t think producers will reduce prices. The US doesn’t have any pig iron, and we need it, a second US source said.
Despite this, some sources expressed opposition to tariffs on pig iron due to a lack of domestic supply.
“I would think that the US would want to exempt pig iron because we don’t have enough supply over here,” a third US source said.
“Probably in [a] month, [the] situation will change. There is no pig iron producer here. Pig has to be [zero] tax,” a fourth US source said.
This comes as the April US ferrous scrap trade has yet to kick off in earnest this week, with some anticipating potential price drops amid sufficient mill supply, sources told Fastmarkets.
Right now, there is a huge glut of scrap out there; [the] market should be down [by] $30-40 [per gross ton], a fifth US source said.
Due to the lack of activity and continued uncertainty of potential price impacts, Fastmarkets’ weekly assessments forpig iron basic grade, Brazil, fob New Orleansandpig iron basic grade, Ukraine/Russia, fob New Orleansstood at $485-525 per tonne on Monday, unchanged from March 31.
Hot-briquetted iron (HBI) prices were also steady this week, with sources noting potential supply disruptions following the US’ 10% reciprocal tariffs.
No imported HBI because Malaysia is tariffed, so that market is dead-dead, the second US source said.
The second US source also noted that domestic HBI access may be limited amid additional importing costs and market competition.
[A US direct-reduced iron (DRI) producer] imports 100% of its iron ore, so their production costs are going to go up, and US mills that make HBI [and] DRI aren’t going to sell it to their competitors, or if they do, it will be at the tariffed price, they continued.
As a result, Fastmarkets’ weekly assessment forhot-briquetted iron, fob New Orleansstood at $410-445 per tonne on Monday, unchanged from the prior week.
Brazilian foundry pig iron prices continued to stagnate week on week amid a lack of market activity.
No new deals, bids or offers were heard as of Monday, April 7.
Fastmarkets subsequently assessedpig iron foundry grade, Brazil, fob New Orleansprices at $575-595 per tonne on Monday, unchanged from March 31.