The weekly Davis Index for basic pig iron (BPI) decreased by $11/gt on Thursday from $364/mt cfr New Orleans to $353/mt cfr Nola following a lower priced sale and waning demand. Activity was slow as market participants grapple with growing uncertainties surrounding the global economy, health, and individual business status.
A sizeable CIS-origin cargo of BPI was sold to the US late last week at $330/mt fob which equates to about $350-355/mt cfr Nola. BPI offers this week originating from CIS and Brazil remained at $365-375/mt cfr Nola following the brief price surge from a CIS-origin BPI cargo sold to the US at $363/mt cfr Nola, reported on March 5.
The one-off, higher priced deal was attributed to increased demand at the time, with only a few offers to sell the material. No further activity has been confirmed at that level. However, supply is still limited this week and BPI producers are resolute in keeping their asking prices at higher levels.
The Davis Index for nodular pig iron (NPI) imports was flat at $418/mt cfr Nola, with no new sales this week. The last heard offers declined to $405-430/mt cfr Nola from $430-440/mt cfr Nola, with no confirmed bids at that level.
The weekly Davis Index for US hot briquetted iron (HBI) imports remained unchanged at $254/mt cfr New Orleans. No HBI import deals to North America were reported this week, nor was the material moving to other locations.
Market participants are anticipating price declines on scrap and scrap alternatives such as BPI in the near- to mid-term, due to the economic downturn. The market repair process can feasibly take a year because we don’t yet know the parameters of global business activity reduction, full amount of damage and length of time needed for reversal of the current economic trends.