Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The weekly Davis Index for basic pig iron (BPI) remained unchanged at $570/mt cfr New Orleans port on Friday, following three consecutive weeks of rising prices, amid a lack of transactions.


New offers for material this week remain at $570/mt cfr Nola, but interest was limited on Friday. Consumers have filled most of the current tonnage needs as March domestic trading concluded earlier in the week.


The most recent transactions comprised of a couple of bookings from the CIS at $570/mt cfr Nola, which are scheduled for May shipment from the Baltic Sea. There were also two BPI cargos from South Brazil booked for high-phosphorus discounted material priced at $520/mt fob or around $560-565/mt cfr Nola. 


Basic pig iron consumption is projected to increase in the short term in relation to prime scrap supply tightness. Market participants noted that mills are adjusting scrap blends to cut prime scrap volume from the mix and replace it with pig iron, including consumers that generally do not purchase the grade. 


Prime scrap may remain tight through Q3 as reinforced by blend changes observed as mills and foundries tend to make these adjustments when a trend is forecast to extend past the near-term. Moreover, pig iron is limited in supply, so prices are anticipated to continue moving upwards. 


The Davis Index for nodular pig iron (NPI) imports increased by $40/mt to $650/mt cfr Nola. Availability and offers are limited for the grade with no recent activity reported. The latest offers heard for NPI fall between $650-680/mt cfr Nola with bid level just under the range.


The weekly Davis Index for US hot briquetted iron (HBI) imports was flat at $425/mt cfr Nola with no new offers or bids heard for the material. The price estimate is based on current market prices for similar grades, price points sellers are willing to trade at and the latest consumer interest levels.

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