The weekly Davis Index for basic pig iron (BPI) increased by $7/mt to $360/mt cfr New Orleans on Thursday after fresh sales concluded in the US in the past week.
A US consumer has imported a couple of cargos of BPI from the CIS following about two months of increasing offer prices that have been met with inactivity.
The most recent bookings to other locations from the CIS this week are at $385-389/mt cfr China, for December shipment, an increase of about $5-9/mt compared with last week’s deals. This transaction would be equivalent to $370-375/mt cfr Nola, indicating further price increase potential in the US.
Domestic ferrous scrap trading is in progress at price increases of $20-40/gt in the Midwest, depending on grade and specific location. The Southern markets are transacting at price increases as high as $40-50/gt which is also putting upward price pressure on scrap alternatives such as BPI.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $386/mt cfr Nola as the US buyers report having adequate material with no new booking confirmed. The current NPI price level is comparable to the latest sales from Brazil to China at $340/mt fob. That level would translate to around $390/mt cfr China, and with added freight would be around $420/mt cfr Nola. However, bids from the US for the material are under that range.
The weekly Davis Index for US hot briquetted iron (HBI) imports was flat at $246/mt cfr Nola. New offers or deals have not been reported for HBI as demand has been low, but the grade would likely be priced near this level currently, based on sales prices for similar material.