The daily Davis Index for Turkish imports of US-origin HMS 1&2 (80:20) increased by $13.31/mt to $461.25/mt cfr on Friday as speculation of potential bulk exports to China continue to stoke bullish sentiment.
The lowest offers heard in the market from any region were at $460-465/mt cfr, up $10-15/mt from a day earlier. Prices have increased by at least $10/mt every day this past week, which has left mills struggling to secure firm offers. Suppliers are hesitant to offer in a market that rises every day.
Pig iron surges
The Pig iron markets have recorded similar trends with rapid increases with each new booking. Two pig iron sales out of south Brazil concluded this week of which, one was at a price level of $505-510/mt cfr New Orleans, for February shipment. Shortly after that deal, a much larger shipment was booked at $10/mt above the previous price level, albeit for prompt shipment.
The Davis Index for Black Sea pig iron rose by $8/mt this week to $493/mt fob, while the index for Italy rose by $10/mt to $503/mt cfr Italy. No new deals were reported to Italy with mills bidding at $500/mt and offers at $505/mt and higher.
At least one pig iron producer has signaled offer prices that are significantly higher than the current $490-495/mt cfr level as both China and the US remain strong buyers.