The weekly Davis Index for basic pig iron (BPI) increased by $8/mt from $319/mt cfr New Orleans to $327/mt cfr Nola on Thursday, as new offer prices for scrap and steel keep rising. Market sentiment is slowly improving, but pig iron import activity is limited.
Domestic ferrous scrap trading for June will likely begin next week, with prices poised to increase by at least $10-20/gt for prime grades because supply is tight. Prices are expected to either remain flat or increase by $10/gt for shredded and cut grades, however, mill buying activity is still sluggish. Prices for scrap alternatives are projected to increase along with other grades.
The latest BPI sales to the US occurred on May 7 and were priced around $310/mt cfr Nola from Brazil and CIS. Brazilian and CIS-origin producers offered material, which would be shipped in August, for $325-355/mt cfr Nola this week, but no sales have been confirmed. Higher sales prices will become fixed if demand for the material increases during June trading.
The Index for nodular pig iron (NPI) imports increased by $10/mt from $365/mt cfr Nola to $375/mt cfr Nola, as offer levels this week increased to $380-390/mt cfr Nola, but sales have not been confirmed.
The weekly Davis Index for US hot briquetted iron (HBI) imports rose by $10/mt from $223/mt cfr Nola to $233/mt cfr Nola. HBI index price is weighed based on producers’ shipping point bids and matched with delivered price variance for similar grades, but HBI import activity has been stagnant for several months.