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

The weekly Davis Index for basic pig iron (BPI) increased by $36/mt to $430/mt cfr New Orleans port on Thursday amid the latest, higher-priced sale to the US from the CIS. The deal closed late last week and is scheduled for February shipment from the Baltic Sea.


Price tags for metallic imports and domestic scrap have been escalating at a faster pace throughout November as supplies are tightening and demand continues to strengthen. Domestic scrap prices in December are projected to rise, at minimum, by $30/gt.


Pig iron availability will be limited as some producers are sold-out, through February, also following several recent sales to China, Turkey, and Italy from the CIS at $415-422/mt cfr. This compares to $395/mt cfr levels at the start of November.


These price points would be equivalent to $408-409/mt cfr Nola, as some US buyers pointed out in surprise, considering the latest US deal that closed more than $20/mt above that point. Additional BPI buying activity occurred in the US this past week, in the low $400/mt cfr range, however, it was quickly made obsolete when larger gains transacted.


The Davis Index for nodular pig iron (NPI) imports ticked up by $2/mt to $445/mt cfr Nola. The material remains limited in supply with few offers; however, market participants assess the price level 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 $3/mt to $265/mt cfr Nola. US buyers mention the material has not been in demand, but the grade is projected to be priced at this level on Thursday, based on the price trends for similar scrap alternatives.

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