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

The weekly Davis Index for basic pig iron (BPI) dropped by $27/mt to $645/mt cfr New Orleans port Friday as fresh transactions concluded this week at lower prices on falling demand. The weekly Davis Index for CIS BPI fell more significantly, by $37/mt, to $605/mt fob Black Sea under additional pressure from higher freight rates.


A deal for around 50,000mt of Russian BPI was closed recently at $645/mt cfr Nola for July shipment, following a sale at $657/mt cfr Nola earlier this week. CIS offers were heard in the range of $650-655/mt cfr Nola while US bids were as low as $640/mt cfr Nola.


US importers have voiced concern over Russia’s potential export tax of 15pc but not lower than $115/mt, which can impact future pricing. In the short term, buyers expect to achieve lower prices as some exporters might be interested in selling ahead of the new tax implementation on Aug 1. However, in the long term, prices for pig iron may increase because Russia, being among the key global suppliers, would face higher duties.


The Davis Index for nodular pig iron (NPI) imports was flat at $748/mt cfr Nola. The grade is in tight supply with offers entailing future shipment. Most recent offers for NPI continue firm at $750-780/mt cfr Nola with bids just under this low point.


US hot briquetted iron (HBI) imports were unchanged at $470/mt cfr Nola as new offers and bids were lacking for the grade. The price level for this material is calculated to include the latest offers along with price comparisons with similar grades.


The weekly Davis Index for CIS pig iron in Italy dropped by $20/mt to $650/mt cfr on Friday as a Ukrainian supplier sold a small cargo at this level.


In Turkey, demand remained weak and bids from mills decreased to $615-620/mt cfr after a large steelmaker booked a cargo from India at $630/mt cfr last week.


 A new transaction for pig iron was fixed in Asia with an exporter from the Far East of Russia selling 5,000mt of the material at $650/mt cfr to Japan.

Leave a Reply

Your email address will not be published.