Brazilian pig iron producer Viena halts output until at least March in 'difficult' market

Viena Siderurgica, one of Brazil's largest merchant pig iron producers, has halted output until at least March 2026, amid "difficult" market conditions, the company announced Aug. 15.

Viena Siderurgica, with a stated pig iron production capacity of 600,000 mt/year, and with installations in Minas Gerais state in Brazil's southeast and Maranhao state in the northeast, halted output Aug. 14, it said in a note to clients, suppliers and employees.

The note, seen by Platts, part of S&P Global Energy, blamed the company's temporary production halt on "notoriously difficult" circumstances in the steelmaking sector in Minas Gerais' Sete Lagoas region, where some of Viena Siderurgica's installations are based.

"Despite efforts made to contain these difficulties, pig iron production has been halted for an indeterminate period, until the sector is able to reestablish itself," the note said.

The rainy season in Minas Gerais state runs from October to March, particularly in regions where pig iron is produced. Charcoal production costs during this period are likely to be higher.

"The outlook is really bad, with prices falling due to tariffs and the dollar's weakness," Viena Siderurgica's Executive Vice President Rodrigo Valladares told Platts. "We won't be back before March."

Although Brazilian pig iron was exempted from a 50% US import tariff placed on other Brazilian goods Aug. 6 by US President Donald Trump in an executive order, the sector was already in turmoil due to expectations that such a tariff would be levied.

These expectations had resulted in US buyers suspending all orders booked for August shipment from pig iron producers in Minas Gerais, and it is unclear if these orders have been reinstated.

Various types of alloy and non-alloy pig iron exports were among iron products exempted from imposition of an additional 40% tax on Brazilian products entering the US from Aug. 6.

Brazilian merchant pig iron entering the US, therefore continues subject to a 10% import tariff.

Brazil produced a total of 5.14 million mt of merchant pig iron in 2024, of which 3.76 million mt was exported, including 3.27 million mt, which went to the US, representing 86.9% of the country's total pig iron exports, according to data from Sindifer, the Brazilian pig iron producers' association.

Minas Gerais is Brazil's biggest merchant pig iron-producing state, having produced 3.8 million mt of pig iron in 2024, of which 68% was exported. Of the export tonnage total, 84.8% was directed to US buyers.

Pig iron is also typically exported from Para and Maranhao states in north and northeastern Brazil.

Platts assessed the pig iron weekly price at $402.50/mt FOB on Aug. 15, down 0.7% week over week.