The weekly Davis Index for basic pig iron (BPI) decreased by $10/mt from $327/mt cfr New Orleans to $317/mt cfr Nola on Thursday as fresh sales were concluded below last week’s offer levels. Markets are quiet for both domestic ferrous scrap and for pig iron imports.
The June domestic ferrous scrap trade commenced June 3, with early settlements below expectations as flows picked up slightly. However, mill buying, and demand, remains low. Pig iron prices and demand are projected to move upwards throughout June.
Recent BPI sales to the US finalized at around $315/mt cfr Nola for CIS-origin material, $5/mt above the sale prices on May 7 at $310/mt cfr Nola. Offer levels this week were at $320-330/mt cfr Nola from Brazil and CIS, similar to the producers’ sale prices into China, where scrap prices are stronger than the US. Offer levels on May 28 to the US from Brazil and CIS were above Thursday’s levels, at around $325-355/mt cfr Nola.
The index for nodular pig iron (NPI) imports remained unchanged at $375/mt cfr Nola as offers this week are low, and new sales have not been confirmed.
The weekly Davis Index for US hot briquetted iron (HBI) imports was flat at $233/mt cfr Nola. HBI import activity has been still for several months with the index price balanced with producers’ shipping point bids and equalized with delivered price variance for similar imports.