The weekly Davis Index for basic pig iron (BPI) increased by $5/mt to $345/mt cfr New Orleans on Thursday as offer prices continued to rise despite US buyers being inactive and unwilling to pay current price points to other locations.
Prices have gradually increased since early June due to elevated demand and activity in China. The most recent bookings this week from the CIS are at $375/mt cfr China, which indicates an increase of $10-15/mt compared to last week’s deals.
This price level would be comparable to $360-365/mt cfr Nola; however, US buyers are not showing interest to match that price so far. The most recent BPI sale to the US was priced at $330/mt cfr Nola in early July.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $370/mt cfr Nola as offers for the material are limited without new bookings confirmed. The demand for NPI has been low in line with lowered foundry operating rates.
The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $2/mt cfr Nola to $215/mt cfr Nola. New offers or deals have not been reported for HBI as demand has been low, but if the grade were offered this week, the price would likely be near this level.
Domestically, scrap prices are showing upside following the gains that began during the August trade week. Further scrap price increases are expected in September, which will carry over to scrap alternative import prices when US buyers resume purchase activity.