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| Pig Iron |
Brazilian Pig Iron Supply Tightness Drives Price Increase
Global pig iron prices rose by $5–20 per ton in early March due to limited supply from Brazil. Meanwhile, Brazilian FOB prices reached $450/t. Rainy-season disruptions and elevated scrap metal costs pressured the market. As a result, U.S. demand strengthened, with February shipments reaching 344,000 tons at $404/t, reflecting December 2025 delivery prices. European buyers adopted a cautious approach due to rising freight and bunker fuel costs amid Persian Gulf tensions.
Black Sea and Turkish Market Challenges
In contrast, the Black Sea market experienced price pressure from weak Turkish demand and Russian price dumping. Average FOB prices rose $5/t to $345/t by March 20. Turkish steelmakers limited purchases due to low production profitability, rising logistics costs, and regional geopolitical risks. January imports to Turkey increased 28.2% m/m to 226,200 tons, largely sourced from Russia at 170,300 tons (+77.3% y/y).
Other Regional Trends and Global Production
Elsewhere, Chinese pig iron prices increased $6/t to $421/t, while India saw a decline of $8/t to $405/t. Globally, pig iron production fell 6% y/y to 110.8 million tons in January 2026. China led production at 65.9 million tons (-10.9% y/y), followed by Japan at 10.3 million tons (+103.8% y/y) and India at 8.5 million tons (-35% y/y). Therefore, supply tightness and regional demand shifts continue to influence global pig iron prices significantly.
ScrapInsight Commentary
Brazilian supply shortages and seasonal production halts are driving pig iron price volatility. U.S. import demand supports higher FOB levels, while Turkish and Black Sea markets remain constrained. Strategic monitoring of freight costs and regional production trends is essential for market forecasting.
