The weekly Davis Index for basic pig iron (BPI) fell by $52/mt to $521/mt cfr New Orleans port on Thursday as fresh cargoes for March shipment were booked to the US from Brazil at lower rates.
Activity for BPI has picked up after a brief lull following the early-January price peaks. Prices for recent deals ranged wide this week with the lowest values marked on high-phosphorus material and higher-priced deals entailing prompt shipment for higher-grade, low phosphorous material.
A lower-valued, higher tonnage BPI transaction concluded at $480/mt fob Brazil, which is around $505-510/mt cfr Nola, albeit discounted from standard pricing. A higher-priced deal was heard near $550/mt cfr Nola, though market participants see BPI value closest to $520/mt cfr on Thursday factoring in the full gambit of details.
Brazilian producers are holding firm on prices as China has been making inquiries and is anticipated to refuel the market when the country begins purchasing the latest and upcoming BPI output. Market participants suggest that US consumers are still willing to pay around $530-540/mt cfr Nola or more this week.
The Davis Index for nodular pig iron (NPI) imports moved down by $62/mt to $583/mt cfr Nola. There is a low activity for the grade that also holds limited availability, but the latest offers and bids heard for NPI have ranged from $560-600/mt cfr Nola with delivery entailing May or June.
The weekly Davis Index for US hot briquetted iron (HBI) imports dropped by $40/mt to $380/mt cfr Nola. Offers or bids have not been reported recently, however, the price estimation has been modified for the material based on price moves for other grades and the latest consumer interest.