Published by: Christian Willbern<>
17 Mar 2025 @ 21:51 UTC

US alternative iron prices rose in the week to Monday March 17 amid fresh price ideas, deals and rising concurrent market prices, sources told Fastmarkets.

A fresh, Brazilian low-phosphorus pig iron deal was reportedly concluded at $485 per tonne FOB New Orleans early Monday morning, according to sources.
Tariff uncertainty continues to plague the market following integrated steelmaker Cleveland-Cliffs’ recent petition to add Brazilian pig iron to the US sanctions list, sources told Fastmarkets on Friday March 14.
If added underneath Section 232 tariffs, US buyers would face an additional tariff cost of $121.25-131.25 per tonne on top of current Brazilian pig iron FOB New Orleans prices, thus increasing supply costs for electric-arc furnace (EAF) steelmakers.
[They] can’t support domestic supply, so unless there is US supply to suggest placing tariffs, then they should not disrupt supply, a US source said.
It doesn’t even make sense what they say, every other steelmaker is saying this doesn’t make sense, a second US source said.
Pig iron sources also noted that a likely outcome of a Brazilian pig iron tariff in the US could be further market disruption.
There will not be sufficient pig iron made in the US to supply the EAF in operation, let alone the ones coming on stream. Not to mention the increase of pollution caused by [blast furnaces] run by coke, a Brazilian source said.
Russian pig iron would flow back in, and it would be priced right below tariffed Brazilian pig iron and increase costs. All tariffs are inflationary at some point, they continued.
Despite this, sources are cautiously optimistic on potential outcomes from the situation.
I think [the request] is going to amount to nothing at the end, especially with [large US steelmakers’] weight against it, but I never say never, the second source said.
Cleveland-Cliffs did not respond to a request for comment by the time of publication.
As of now, Brazilian producers reportedly targeted a higher price of $480-490 per tonne, with some sources anticipating higher prices amid tightening availability and strengthening finished steel and scrap prices.
[Pig iron] producers don’t have to make a move on anything yet… It’s a combination of waiting until tariffs get figured out and also availability — nothing’s available until July or August, a third US source said.
Steel mills’ lead times are increasing, production capacity is increasing, [hot-rolled coil] prices are increasing, so it’s hard to say that pig iron prices should stay the same, they added.
Utilization rates are going to go up over the next quarter which will continue to support demand for scrap, they continued.
US Midwest HRC prices broke the $47 per hundredweight ($940 per short ton) threshold on Friday, with potential tariff ramifications still spurring spot buying activity as of late, sources told Fastmarkets.
Lead times also increased to six to eight weeks on Friday, up from five to seven weeks the month prior.
Fastmarkets’ daily steel hot-rolled coil index, fob mill US Midwest fell to $47.31 per cwt ($946.20 per short ton) on Monday March 17, down from $47.81 per cwt on Friday but higher than $46.88 per cwt a week earlier on March 10.
As a result, pig iron basic grade, Brazil, fob New Orleans and pig iron basic grade, Ukraine/Russia, fob New Orleans prices rose to $485-525 per tonne on Monday, up by $10 per tonne from the week prior.
Hot-briquetted iron and Brazilian foundry pig iron prices increased in the week following gains within the basic pig iron market.
The hot-briquetted spot market remained largely inactive in the week to Monday, however a fourth US source believed the next deals will be higher.
As a result, hot-briquetted iron, fob New Orleans and pig iron foundry grade, Brazil, fob New Orleans prices increased by $10 per tonne week on week on Monday, rising to $410-445 per tonne and $575-595 per tonne respectively.