The weekly Davis Index for basic pig iron (BPI) ticked down by $1/mt to $340/mt cfr New Orleans on Thursday amid market silence and inactive sales. Offer prices to the US remain in line with sales prices to alternate destinations.
The last BPI deal that concluded in the US was priced at $330/mt cfr Nola in early July. US buyers view BPI prices at $330-335/mt cfr Nola this week despite material offers originating from Brazil and CIS remaining higher, at around $355-360/mt cfr Nola.
Current US offers entail November or December shipment amid strong prior sales that cover production for the next few months.
China’s most recent BPI purchase was at $355/mt cfr from the CIS and producers continue to offer material at matching levels to the US as activity remains high in China. However, US buyers view these offers as unviable because of reduced activity along with less costs required for freight.
The Davis Index for nodular pig iron (NPI) imports declined by $2/mt to $370/mt cfr Nola as offers for the material are limited without new deals confirmed. NPI demand remains low as foundry operating rates are condensed.
The weekly Davis Index for US hot briquetted iron (HBI) imports dropped by $27/mt to $208/mt cfr Nola. The large disparity represents a recalculation to a more comparable price estimate for the grade, based on declines seen with similar material. However, there are no bookings reported for HBI amid low demand and import activity.
The August domestic scrap trade is slated to begin next week with prices projected to drop by $10-20/gt on prime grades while shredded and cut grades may remain unchanged from July prices. The lowered sentiment may extend to prices for scrap alternatives, though BPI demand from other locations is currently holding up prices for the material in the US.