The weekly Davis Index for basic pig iron (BPI) increased by $2/mt from $322/mt cfr New Orleans to $324/mt cfr Nola on Thursday amid higher offer prices to the US. Pig iron imports have been muted with low demand and little activity reported.
The latest cargoes of BPI sold to the US last week at $320-322/mt cfr Nola for CIS-origin material. The succeeding BPI deals are projected at $325/mt cfr Nola, but sales were not concluded at that price point as of June 18.
This week, the offers for BPI from the CIS region are in the range of $325-330/mt cfr Nola, a range that has remained constant since June 4. Brazilian producers have sold material at higher numbers into China and so far, matching offers from buyers in the US have not been reported.
The index for nodular pig iron (NPI) imports remained unchanged at $375/mt cfr Nola as new offers for the material have not been heard since the end of May, and sales have not been confirmed. The weekly Davis Index for US hot briquetted iron (HBI) imports were flat at $233/mt cfr Nola amid low demand and import activity for the grade.
BPI has remained in tight supply, according to market participants, and is seemingly rising in price potential despite waning scrap and steel markets. Little US import activity is expected until the industry picks up and demand for scrap alternatives improves. Incremental market improvements have emerged by mid-June but domestic sentiment is currently soft as plenty of prime scrap is available due to low mill buying.