The weekly Davis Index for basic pig iron (BPI) remained unchanged at $340/mt cfr New Orleans on Thursday as the US market focuses on August domestic scrap trading and BPI imports remain inactive.
Elevated offer levels to the US remain amid other locations accepting those price levels. For example, China continues to purchase BPI at $330/mt fob Brazil, which equates to $360-365/mt cfr China, which could be estimated at $350-355/mt cfr New Orleans.
Deals reported last week to China were at $355/mt cfr for BPI from the CIS, the current offer levels to alternate destinations such as the US. However, the most recent BPI sale to the US concluded at $330/mt cfr Nola in early July.
The domestic scrap market is showing signs of upward potential as August trading is concluding at increased levels in several US markets, which are expected to carry into September and Q4 2020. BPI activity could resume in the US over the next few weeks with projections of increased prices.
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. Demand for NPI has been lowered due to reduced foundry operating rates.
The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $5/mt to $213/mt cfr Nola. There are no offers or deals reported for HBI amid low demand, but if material were offered this week, the likely price range would be $210-215/mt cfr Nola.