The weekly Davis Index for basic pig iron (BPI) increased by $3/mt to $348/mt cfr New Orleans on Thursday amid rising sales prices to alternative destinations and corresponding, escalated price offers to the US.
Buyers in the US have been inactive and reluctant to pay the existing price levels to other locations. However, offer prices to the US have consistently risen since the beginning of July amid strong demand and buying activity in China.
The most recent bookings this week from the CIS were reported at $375-380/mt cfr China, which is an increase of about $5/mt compared to last week’s deals. Offers to the US on Tuesday were at $365-370/mt cfr Nola, albeit with no support yet.
The Davis Index for nodular pig iron (NPI) imports increased by $12/mt to $382/mt cfr Nola due to a price adjustment to closer match the US price with the latest sales from Brazil to China at $340/mt fob. That level plausibly equates to about $390/mt cfr China. As a result, with freight to the US, a deal for this material could be as high as $420/mt cfr Nola. However, the material is limited, and with no bookings confirmed to the US, bids are lower.
The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $3/mt cfr Nola to $218/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.