Pig Iron Price Trend: What Happened in Q2 2025?

Pig iron might not be something we talk about every day, but it plays a very important role in the production of steel, which we use in everything from buildings to cars to home appliances. So, when pig iron prices change, it affects not just big industries, but eventually everyday people as well.

According to PriceWatch, the second quarter of 2025 saw some interesting developments in pig iron prices around the world especially in Brazil, the United States, and China. Let’s break it all down in plain, simple language and try to understand what’s really going on with pig iron prices.

Brazil: Prices Rise Despite Higher Production

In Brazil, pig iron prices increased from $424 per metric ton in Q1 to $442 in Q2. That’s a 4.25% rise, which is quite notable, especially when you consider that production also went up.

Brazilian pig iron production rose by almost 10% in March and by 2.5% overall in Q1, yet the market still managed to absorb this extra supply. Usually, when supply goes up, prices tend to go down. But in this case, demand was strong enough to keep prices climbing.

So, what caused this demand?

The answer lies mainly in the United States, Brazil’s top customer when it comes to pig iron exports. US buyers came back into the market after a slow period, and they came back strong. This revival in US demand supported Brazilian pig iron prices, even with higher production levels.

In short, Brazil’s pig iron producers had more to sell, and buyers especially in the US were eager to purchase, which helped push prices up steadily through the quarter.

For latest updates, price queries, demand forecasts, and supplier information related to Pig Iron prices, submit your request here: https://www.price-watch.ai/contact/

United States: Prices Up Amid Supply Tightness

Now, let’s talk about the US side of the story.

Pig iron prices in the United States also rose by 2.77% in Q2. The reason? A combination of lower imports, tariff concerns, and strong demand from US steel mills.

Let’s look at each factor:

1. Imports Fell Sharply

The US experienced a big drop in pig iron imports during the quarter import volumes fell to multi-year lows. With fewer pig iron shipments coming in, especially from Russia and Ukraine (because of new tariffs and geopolitical tensions), the domestic supply got tighter.

When supply is tight and demand remains steady or goes up, prices almost always rise. That’s exactly what happened here.

2. Uncertainty Around Tariffs

US buyers were also dealing with uncertainty regarding new tariffs. This made them nervous about relying too much on imported pig iron. Instead, they looked for more stable supply sources, like Brazil, even if prices were a bit higher.

3. Higher Scrap Prices

Another interesting point is that ferrous scrap prices another raw material used in steelmaking were also rising during this time. This made pig iron more attractive as an alternative raw material for some steel mills, which added more fuel to the fire in terms of demand.

So, overall, lower imports, higher scrap prices, and strong steel sector demand kept pig iron prices climbing in the US during Q2 2025.

China: A Different Story: Prices Fall

Unlike Brazil and the United States, China saw a very different trend in Q2. Pig iron prices there actually dropped by 7.57%.

Why the sharp decline?

It all comes down to the basic forces of supply and demand, and right now, China is facing weak steel demand, high inventories, and strong competition from other raw materials. Let’s break it down:

1. Steel Demand is Weak

Steel demand in China has been under pressure lately. Whether it’s construction, manufacturing, or infrastructure—many industries are slowing down. When steel demand drops, so does the demand for pig iron.

2. Pig Iron Supply is Stable but Not Needed

Even though pig iron production in China remained steady, it wasn’t matched by downstream demand. In other words, there was enough pig iron being made, but not enough people were buying it.

3. Too Much Inventory

Steel mills and suppliers had too much pig iron in stock, which put extra pressure on prices. When you’re holding onto too much product, you’re often forced to lower the price just to move it.

4. Competition and Iron Ore Price Fluctuations

China’s market is also seeing increased competition from other raw materials used in steel production. On top of that, iron ore prices have been bouncing up and down, which adds more uncertainty. Many buyers took a cautious approach, waiting to see what would happen instead of placing big orders.

The result? Producers in China had to lower their prices just to keep sales going. This is a clear sign of broader weakness in the country’s steel and raw materials markets during Q2.

So, What’s the Big Picture?

To sum things up, here’s what we saw in Q2 2025:

• Brazil: Prices went up (4.25%) thanks to strong demand from the US, even with rising production.

• United States: Prices rose (2.77%) due to low imports, tariff concerns, and strong demand from steelmakers.

• China: Prices fell by 7.57% because of low demand, high inventories, and market uncertainty.

What this shows is that the pig iron market is currently very regional. Different countries are experiencing very different price trends based on their local market conditions.

What Could Happen Next?

Looking forward, several factors could influence where pig iron prices go in the second half of 2025:

• US Tariff Policies: If new tariffs are introduced or existing ones are lifted, this could shake up import patterns and affect pricing.

• Global Steel Demand: If the steel sector picks up, pig iron demand could rise, especially in places like China.

• Brazil’s Production: If Brazilian producers continue to ramp up output, they’ll need strong export demand to keep prices stable.

• China’s Market Recovery: Any rebound in China’s construction or manufacturing sectors could push pig iron prices back up.

Final Thoughts

Pig iron may not make headlines every day, but its price trend gives us a useful window into what’s happening in the global steel industry. In Q2 2025, the picture was mixed rising prices in Brazil and the US, falling prices in China. These shifts were driven by very real factors: demand, supply, tariffs, and economic activity.

As we head into the second half of the year, all eyes will be on how these trends evolve—and whether the market can find some stability in what has become a very uncertain global environment.