The weekly Davis Index for basic pig iron (BPI) increased by $3/mt from $338/mt cfr New Orleans to $341/mt cfr Nola on Thursday as producers continued offering material to the US at increasing prices based on sales to other locations.

 

Offer prices in the US have risen on the limited availability of material and higher demand and sale prices to China compared with the US.

 

The most recent US BPI sale was confirmed at $330/mt cfr Nola earlier in July. Producers are offering material at $355-365/mt cfr Nola from the CIS and at around $360/mt cfr Nola from southern Brazil. However, US buyers are more likely or willing to pay around $335-340/mt cfr Nola this week.

 

China bought CIS-origin BPI this week at $360/mt cfr, an increase of about $6-7/mt above their last purchase from July 16, however, US buyers believe that number is too high.

 

The Davis Index for nodular pig iron (NPI) imports declined by $2/mt to $372/mt cfr Nola as offers for the material have been restricted and new bookings have not been confirmed. Demand for NPI is currently low as foundry operating rates have been reduced.

 

The weekly Davis Index for US hot briquetted iron (HBI) imports remained unchanged at $235/mt cfr Nola amid low demand and import activity for the grade.

 

Domestic scrap markets are projected to remain somewhat firm heading into August as mills attempt to increase finished steel spot price offers. Pig iron is expected to remain strong due to Chinese demand, sales prices, and limited allocation of the material.

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