The weekly Davis Index for basic pig iron (BPI) increased by $8/mt to $394/mt cfr New Orleans port on Thursday as offer levels to the US proceed upward amid strong demand and sales to China.
Price increases have been trending up for metallic imports and domestic scrap in November due to limited supply and rising demand.
The last BPI sales to the US concluded at the end of October at $377-382/mt cfr Nola. US buyers were being quoted $390-400/mt cfr Nola for BPI cargoes on Thursday for January shipment.
BPI consumers in the US were hesitant last week, to agree to the latest, climbing offer levels. However, US buyers are planning to resume purchases in the short term and expect the next deals to settle near $390-395/mt cfr Nola.
The most recent BPI sales into China and Taiwan from the CIS still stand at $405/mt cfr, barring trader fees, which would equate to $390-395/mt cfr Nola. The prior transactions from late October were at $392-395/mt cfr, while offers heard into China this week are at $410-415/mt cfr.
The Davis Index for nodular pig iron (NPI) imports increased by $5/mt to $443/mt cfr Nola. This grade has been in tight supply and not readily offered, but buyers assess the price point for NPI into the US market around $440-445/mt cfr Nola on Thursday.
The weekly Davis Index for US hot briquetted iron (HBI) imports rose by $4/mt to $262/mt cfr Nola. Buyers have not considered purchasing this grade in some time, however pricing for the material is projected at this level, based on price trends for comparable scrap grades.