The weekly Davis Index for basic pig iron (BPI) decreased by $2/mt to $386/mt cfr New Orleans port on Thursday after import markets became quiet and activity slackened over the past two weeks.
The last confirmed BPI sale to the US concluded in late September when the CIS sold a few cargoes at $387-390/mt cfr Nola. Sources informed that a rumor of a BPI cargo being sold to the US at $375/mt cfr Nola was false. In fact, new offer levels are expected to be around $385/mt cfr Nola.
Market participants heard that a 60,000mt cargo of BPI was sold at $385/mt cfr China late last week, down by about $8/mt compared to the BPI sale at $393/mt cfr China from the CIS on Sep 17.
The US market is currently more focused on the domestic scrap trade, which was in full swing on Thursday with prices trending flat to down by about $5-10/gt near the coasts. BPI prices could weaken as their sales in Asia have declined. A weakness in the US domestic scrap prices could also impact BPI rates.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $420/mt cfr Nola as supply of the grade is tight and no recent offers or deals have been confirmed.
The weekly Davis Index for US hot briquetted iron (HBI) imports is flat at $255/mt cfr Nola. New activity has not been reported for HBI due to low demand, however, the material is likely priced at this level on Thursday, compared to price trends for similar alternative grades.