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

The weekly Davis Index for basic pig iron (BPI) ticked up by $7/mt to $573/mt cfr New Orleans port on Friday as import offer prices rose on bullish supplier sentiment. This positive outlook also lifted the weekly Davis Index for CIS BPI by $4/mt to $540/mt fob Black Sea.


Offers for BPI from the CIS are stronger rose to $570-590/mt cfr Nola with one producer offering the material at $650/mt cfr Nola on limited availability. However, this level was rejected by US buyers.


A tightening market for prime scrap supply is also expected to boost US pig iron imports in the near term. Prime scrap grades held firm on pricing in the US domestic ferrous market this month, unchanged against March settled prices with no near-term correction expected.


The most recent BPI transactions in the US were reported earlier this week from Southern Brazil at around $540-555/mt cfr Nola for high-phosphorus, lower grade material, and a spot pig iron trade by barge was reported out of the Nola port at $575/mt late last week.


A large Turkish steelmaker also purchased 30,000mt of pig iron from Brazil at $555/mt cfr during the week. Turkish importers are opting for alternative routes after CIS exporters raised offers to $550-570/mt fob Black Sea with a Russian supplier who is sold out until the second half of June offering the material at as high as $620/mt fob.


The Davis Index for nodular pig iron (NPI) imports remained unchanged at $650/mt cfr Nola. The material is in tight supply and current offers entail shipment only by July. Offers heard for NPI this week remain between $650-680/mt cfr Nola with bid level just under the range.


For US hot briquetted iron (HBI) imports stayed flat at $425/mt cfr Nola with no new offers or bids heard for the material. The price is based on current market prices for similar grades and price points sellers are willing to trade at given current consumer interest.


In Italy, the weekly Davis Index for CIS pig iron remained unchanged at $568/mt cfr on Friday in a quiet market. Italian mills are considering lower-priced alternatives such as ferrous scrap imports after the gap between scrap and pig iron increased to more than $130/mt this week.

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