The weekly Davis Index for basic pig iron (BPI) increased by $25/mt on Thursday to $388/mt cfr New Orleans on the conclusion of new deals and US buyers heeding higher prices.

 

A few cargoes of BPI originating from the CIS were sold from a couple producers at prices in the range of $385-390/mt cfr Nola. Previous BPI sales were around $360/mt cfr Nola on August 28, with offer prices subsequently climbing incrementally.

 

Material was offered to more US buyers on Thursday for $390/mt cfr Nola for November and December shipments. Additional deals are expected within the next week.

 

The latest confirmed prices for BPI sold into China from the CIS are around $393/mt cfr, while Brazilian BPI sold to China has been reported as high as $400/mt cfr. These prices are considerably higher than the CIS-origin BPI sold to China for $370-380/mt cfr a week ago.

 

The Davis Index for nodular pig iron (NPI) imports increased by $25/mt to $420/mt cfr Nola because supply is constricted and Brazilian sellers revised their focus to BPI production in order to meet rising demand. The newest offers for NPI were for around $405-410/mt fob Brazil, which parallels $430-435/mt cfr Nola, however, US buyers reckon the price is closer to $400/mt cfr Nola. 

 

The weekly Davis Index for US hot briquetted iron (HBI) imports increased by $9/mt to $255/mt cfr Nola. There have been no recent offers or bids reported for HBI, as demand has been low, but the grade is likely valued near this level, based on price trends for comparable materials.

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