The weekly Davis Index for basic pig iron (BPI) increased by $8/mt from $311/mt cfr New Orleans to $319/mt cfr Nola on Thursday, as new offer prices rose on improved demand. However, supply remains scarce.
Prices for ferrous scrap and scrap alternatives are expected to increase heading into June, along with steel prices, following mills’ offer sheet increase announcements. However, persistent market ambiguity means only soft increases have been projected.
Last week, several BPI cargos were unloaded and shipped upriver to Midwest mills, which have, according to market participants, met requirements for the grade and aren’t looking for more material until July.
The last BPI deals in the US were for $305-310/mt cfr Nola from Brazil and CIS. Brazilian and CIS-origin producers are offering material at $325-355/mt cfr Nola this week for August shipment. No sales have been confirmed for about two weeks, since most prompt material is already shipped or booked. Higher offer prices may become firm if demand rises, although that is also contingent on domestic scrap prices, among other industry dynamics, next month.
The Index for nodular pig iron (NPI) imports remained unchanged $365/mt cfr Nola, as offer this week have been around $360-370/mt cfr Nola with no confirmed sales.
The weekly Davis Index for US hot briquetted iron (HBI) imports were flat at $223/mt cfr Nola on Thursday, amid low demand and activity for the grade.