Brazilian pig iron producers are benefiting form the highest export prices they have ever experienced, Afonso Henrique Paulino, vice-president of pig iron producers association Sindifer, told BNamericas.
"July export contracts are currently being negotiated at $280/t FOB," he said, adding that pig iron being shipped this month is at around $200/t.
Paulino said there is no way to forecast how long prices will remain this high because it is not known how much pig iron China itself produces and can put on the market.
Last year, Sindifer member companies, exported 2.6 million tons of pig iron, and are forecast to export 3 million tons this year.
"We are producing at a rate of 6.3 million tons a year," he said, adding that the difference is sold on the domestic market.
Paulino said prices on the domestic market lag behind international prices since they are negotiated with a one-month delay. "We are studying ways to cushion the impact of price increases on our clients," he said.
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