The weekly Davis Index for basic pig iron (BPI) increased by $11/mt to $311/mt cfr New Orleans on Thursday as price proposals increased amid gradually mounting supply and demand.
New offer prices originating in the CIS were reported at $320-330/mt cfr Nola this week while new proposals from Brazil were in the range of $320-325/mt cfr Nola, all for August shipment.
A producer in Brazil sold BPI to the US last week at $290-295/mt cfr. CIS-origin producers sold 130,000mt of BPI to the US, confirmed on May 7 at $305/mt cfr Nola and at $317/mt cfr North Carolina with freight premium included in the latter deal.
The weekly index for nodular pig iron (NPI) imports rose by $7/mt to $365/mt cfr Nola, as offer levels are at around $360-370/mt cfr Nola, but sales have not been confirmed since Dec 2019.
The Davis Index for US hot briquetted iron (HBI) imports increased by $25/mt to $223/mt cfr Nola, amid elevated demand and offer price due to upward pressure on other grades. However, sales have not been confirmed and offer price remains about $20/mt below September 2019’s levels, when demand was stronger for the material.
Automotive companies are slowly resuming production, adding to supply, however, they will not generate enough scrap to cover somewhat growing demand. Prices for scrap alternatives are projected to increase heading into June, together with steel prices, but uncertainty looms.