Published by: Christian Willbern<>
28 Apr 2025 @ 20:04 UTC

US pig iron prices were steady in the week to Monday April 28 as market participants shied away from activity in hopes of a tariff exemption for pig iron, sources told Fastmarkets.

Everybody is waiting to do anything; people are reiterating that they think pig [iron] will be exempt from tariffs, so they’re waiting for that to come off, a US source said. But it’s still not off yet, so there’s just nothing going on.
Some larger US mills, such as Steel Dynamics (SDI), said they were well-positioned with other raw materials in case pig iron is not exempted.
Just as we did at the onset of the Ukrainian war, when pig iron pricing went skyrocketing and availability was challenged, we increased our prime scrap and, more importantly, our low-residual scrap and reduced that pig iron content or that type, so that will be reduced, SDI chairman and chief executive officer Mark Millet said on Wednesday April 23 during an earnings call.
But the first US source said that it may be harder than it seems to obtain prime scrap.
The issue is that there are several million more short tons of steel production in the US since the [Russian-Ukrainian] war started, so it’s not as easy to get [prime scrap] as it was last time, the first US source said.
This comes as the 10% tariff has had an impact of over $1 million on 30,000[-tonne] volume vessels in the pig iron market, a second US source said.
Baseline tariffs based on the current low end of FOB New Orleans pig iron prices equate to $48.50 per tonne; thus, an additional $1.45 million could be incurred for 30,000-tonne pig iron vessels coming into the US, Fastmarkets understands.
Tariffs also continued stalling pig iron sales negotiations, the second US source said, adding that pre-tariff negotiations typically take roughly a week to finalize.
I’ve been working two weeks to finalize a deal, [and I’m] still working on it, the second US source said.
The first US source said that US customers agreed to absorb tariff costs on future pig iron sales and shipments on Monday, indicating progress on a previous stalemate between buyers and sellers.
It will lead to less pig iron in their melts, but customers agreed to pay it when it comes in, the first US source added.
But on Friday April 25, the second US source said, There are a couple [of pig iron producers] willing to consider reducing [prices], and I know other larger consumers are pushing brokers/producers to share in the tariff costs.
Despite this, market participants expect activity to pick up following the May domestic ferrous scrap trade.
We’ll see what scrap does next month, but, at this point, everyone sees the market as stable, the first US source said.
Current expectations for the May scrap market are sideways to April, a Brazilian source said.
As a result, Fastmarkets assessed pig iron basic grade, Brazil, fob New Orleans and pig iron basic grade, Ukraine/Russia, fob New Orleans at $485-525 per tonne on Monday, both flat from the prior week.
Hot-briquetted iron (HBI) prices were unchanged this week due to a lack of spot market activity, sources told Fastmarkets.
Nothing spot for HBI; [it’s] all been contract cargoes, a third US source said.
HBI is still 85% of [the basic pig iron] price, the first US source said.
Fastmarkets assessed hot-briquetted iron, fob New Orleans at $410-445 per tonne on Monday, unchanged from March 21.
Brazilian foundry pig iron prices were flat week on week due to market illiquidity, sources told Fastmarkets.
Things seem to be quiet, so it’s still the same, the first US source said.
As a result, Fastmarkets assessed pig iron foundry grade, Brazil, fob New Orleans at $575-595 per tonne on Monday, unchanged from the prior week.