The weekly Davis Index for basic pig iron (BPI) decreased by $3/mt to $388/mt cfr New Orleans port on Thursday as the latest offers remained at last week’s levels, even though the most recent deal was concluded slightly below the proposed prices.
The downtrend follows a BPI price growth of about $30/mt in September and around $50/mt over the past 60 days. The Davis Index for BPI was at $360/mt cfr Nola on Sep 3 and at $340/mt cfr Nola on Aug 6.
The US market is quiet this week as buyers hold off following a slowdown of BPI sales in Asia. Participants also wait in anticipation of domestic scrap trading to commence amid fading price sentiment. October ferrous scrap prices have the potential to slip a little, which will pull BPI prices down as well.
The most recent BPI sale concluded late last week when the CIS sold a few cargoes at $387-390/mt cfr Nola. Offers this week for November and December shipment are at $390/mt cfr Nola, with no deals confirmed. Last week’s offers trended flat to up $5/mt compared with Thursday.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $420/mt cfr Nola as the supply of the grade is tight and Brazilian producers shifted focus to BPI production when Chinese demand was raised. Most recent offers for NPI were around $405-410/mt fob Brazil, which matches $430-435/mt cfr Nola, however, US buyers see the price near $400/mt cfr Nola.
The weekly Davis Index for US hot briquetted iron (HBI) imports is flat at $255/mt cfr Nola. New offers or bids have not been reported for HBI due to lowered demand, however, pricing for the material is projected at this level on Thursday, based on price trends for comparable scrap grades.