The weekly Davis Index for basic pig iron (BPI) increased by $5/mt to $353/mt cfr New Orleans on Thursday, as elevated offer prices to the US continued because of strong demand and sales to other locations.
Buying in China has been consistent with the latest BPI offers from the CIS at $380/mt cfr China this week, about $5/mt above last week. Current price points for BPI are about $365-370/mt cfr Nola, despite the lack of activity and interest in the US going back to the beginning of July.
The September domestic ferrous scrap trade is slated to begin next week with expectations of $20-30/gt price increases compared to August levels. Prices for scrap alternatives will be influenced by the upsurge when buying for those grades resumes.
The Davis Index for nodular pig iron (NPI) imports increased by $4/mt to $386/mt cfr Nola, as a price equivalent to bring the US price closer to the latest sales from Brazil to China at $340/mt fob. That level would be around $390/mt cfr China, and with added freight to the US, it would be around $420/mt cfr Nola. The US has adequate material with no confirmed bookings, so US bids would likely be lower.
The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $28/mt cfr Nola to $246/mt cfr Nola. New offers or deals have not been reported for HBI, posssibly because of low demand, but the grade will likely be priced near this level, based on the latest sale prices for similar material.