With significant surge in domestic sponge & billet offers, the private pig iron manufacturers also have raised their offers during the week 45 (30th Oct – 05th Nov) as demand has picked.
According to SteelMint assessment offers for the current week increased by INR 500-1,000/MT (USD 8-15) and stood at INR 23,200-25,700/MT (USD 360-398) against last week at INR 22,500-25,500/MT (USD 349-395), ex-works & excluding GST at 18%.
The manufacturers in East region (West Bengal & Jhakhand) who’s monthly pig iron production is about 20,000-30,000 MT stated “inquires are strong presently with the sharp hike in billet prices as price gap widened between billet & pig iron to INR 3,500-4,000/MT from earlier at around INR 2,500/MT.”
Notably, past couple of weeks domestic billet prices surge by INR 800-1,500/MT (USD 12-23), while in the same duration pig iron prices increase by INR 500-1,000/MT (USD 8-15) which has broadened price gap in these products.
Trade Updates
1. Jayaswal Neco Industries in Raipur – Central India has increased offers to INR 25,000/MT from the last trades at INR 24,500-24,750/MT ex-plant, the officials reported.
2. Bokaro based private producer has kept sales on hold due to strong bookings at the last offers of INR 22,000-22,500/MT now the company is planning to raise offers to INR 23,000-23,500/MT ex-plant.
3. Neo Metaliks in Durgapur – West Bengal has increased offers by INR 500/MT to INR 24,000/MT. The last trades reported at INR 23,600-23,800/MT.
4. Jindal Steels has increased offers by INR 300-500/MT to INR 22,800-23,000/MT for Granulated pig iron (panther shots). Pooled iron offers by Tata Steel heard around INR 21,500-21,700/MT. The both prices are ex-plant, Odisha & excluding GST.
5. There is no fresh tender by RSP (Rourkela Steel Plant). The last tender by the company was held on 26th Oct for about 3,000 MT steel grade pig iron which received poor response. According to market participants, nearly 500 MT pig iron was sold out and the remaining material is unsold. The bid price of the tender was around INR 22,900/MT (ex-plant).
5. Trade participants in North region – Ludhiana reported better demand for steel grade material thus offers increase to INR 26,000/MT from the last week at around INR 25,300-25,500/MT & Foundry grade material stable at INR 28,000-28,200/MT FOR & excluding GST.
6. Neelchal Ispat (NINL), blast furnace maintenance work likely to be start during mid of Nov’17 or from upcoming month, the officials from the company reported.
7. MMTC, India’s largest and state owned trading house on behalf of NINL has floated a export tender for 15,000 MT pig iron which expiring on 08 Nov.
8. Global pig iron market continues to witness limited trade activities. Indian pig iron export price assessment is at around USD 330/MT, FoB India. Further, offers from CIS nations are heard around USD 330-340/MT, FoB Black Sea.
9. According to data maintained by SteelMint stats, Indian bulk pig iron exports in CY16 recorded at 0.17 MnT which is in current calender year increase to 0.5 MnT (till Oct’17) and are expected to touch highest ever at 0.6 MnT.
10. Coking coal offers continue to drop globally over low demand from Chinese mills. The latest offer for the Premium HCC is assessed at around USD 193/MT CFR India, down around USD 17/MT, W-o-W.
Steel grade pig iron reference prices as on 04 Nov’17
| Particular/Delivery | Prices | Min | Max | 1W | 1M |
| Ex-Bokaro | 23,200 | 23,000 | 23,500 | 22,500 | 23,033 |
| Ex-Durgapur | 23,700 | 23,500 | 24,000 | 22,600 | 23,025 |
| Ex-Giridih | 23,200 | 23,000 | 23,500 | 22,150 | 23,075 |
| Ex-Hyderabad | 25,500 | 25,200 | 25,500 | 25,350 | 25,350 |
| Ex-Jharsuguda | 23,500 | 23,250 | 23,750 | 23,375 | – |
| Ex-Ludhiana | 25,800 | 25,600 | 26,000 | 24,850 | 26,050 |
| Ex-Raigarh | 24,500 | 24,200 | 24,500 | 24,350 | 25,425 |
| Ex-Raipur | 24,700 | 24,500 | 25,000 | 24,500 | 25,575 |
| Ex-Vizag | 25,100 | 24,800 | 25,300 | 25,100 | 24,850 |
Prices ex-works & excluding GST @ 18%
Source SteelMint Research
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