The weekly Davis Index for basic pig iron (BPI) was flat for the second successive week at $570/mt cfr New Orleans port on Friday as activity diminished in a quiet metallics import market with offers remaining at last week’s levels.
Offers from the CIS are firm at $570/mt cfr Nola this week as producers have already sold a good portion of material for May delivery. Buyers are hesitating to conclude until they receive more clarity on market direction.
Markets are declining globally but pig iron has encountered unusual market dynamics and is expected to remain firm in the near term, regardless of other grades’ movements and whether China resumes BPI purchases.
Participants cite that domestic BPI is in demand and sales transpiring this week are concluding at the current import value and above, at around $585/gt. The current price strength is due to limited prime scrap availability and the use of BPI to supplement prime scrap needs.
Market participants are also looking for more overall domestic pricing indications for all grades in April before finalizing next BPI import deals. Early indications point to some softness with secondary grades however primes remain firm.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $650/mt cfr Nola. Offers and availability are limited for the material with no recent activity reported. Recent offers heard for NPI remain between $650-680/mt cfr Nola with bid level just under the range.
The weekly Davis Index for US hot briquetted iron (HBI) imports was flat at $425/mt cfr Nola. Offers or bids have not been heard recently however the material’s unchanged price valuation is based on price movements occurring for similar grades along with most recent consumer interest levels.