The weekly Davis Index for basic pig iron (BPI) increased by $3/mt to $391/mt cfr New Orleans on Thursday. The latest offers came in at slightly elevated levels compared to last week’s sales prices, but no deals have been confirmed.
US buyers are not showing an interest in purchasing BPI at the new offer prices of $390-395/mt cfr Nola, for December and January shipment. The most recent proposals follow a few deals that concluded on September 17 at $385-390/mt cfr Nola.
Markets are quiet this week as participants await further cues for market direction. Sentiment has fluctuated to some extent amid several variables including steel mill inventory levels, mill production uncertainty, scrap flows, export activity, and general price expectations.
The Davis Index for nodular pig iron (NPI) imports remained unchanged at $420/mt cfr Nola as supply of the grade is tight and Brazilian producers are focusing on BPI production due to higher demand for the material. The latest offers for NPI would be around $405-410/mt fob Brazil, which equals $430-435/mt cfr Nola; however, US buyers view the price closer to $400/mt cfr Nola.
The weekly Davis Index for US hot briquetted iron (HBI) imports was flat at $255/mt cfr Nola on Thursday. New offers or bids have not been reported for HBI due to lowered demand, however pricing for the material is expectedly close to this level on Thursday, based on price trends for similar scrap alternatives.