SteelMint learnt from market participants that Pig iron offers in East part of India – West Bengal & Jharkhand declined by INR 200-400/MT (USD 3-6.5) following price corrections in billet which has led to low inquiries for pig iron.
The price assessment for the current week in East India stood at INR 23,800-24,000/MT (Durgapur) & around INR 23,500/MT (Ex-Giridih/Bokaro). And for the same offers during last week were reported at INR 24,000-24,200/MT in Durgapur & INR 23,800-23,900/MT ex-Giridih/Jharkhand; down around INR 200-400/MT, W-o-W.
“Inquiries are less due to falling billet prices and the buyers are holding their bulk purchases which has mounted pressure to deal with reduce prices,” said a Durgapur based private pig iron producer clarifying the slowdown demand for the low silicon (steel grade) pig iron.
SteelMint learned that small deals have been concluded at current offers but the manufacturers opinioned that soon deals will remain at lower prices, if billet demands remain on same line.
In context price movement in other major markets of India, it remain unaltered in Central region- Raipur & Raigarh at near to INR 24,800-25,000/MT and in South India – Hyderabad at INR 25,500-25,750/MT FOR & excluding GST.
Trade Updates
1. Steel grade Pig iron offers by the Manufacturer in Raipur – Central India reported at INR 25,250/MT ex-plant, while through traders it sold out at around INR 24,800-25,000/MT.
2. Bokaro based one of the private pig iron manufacturer has offered steel grade material at INR 23,300-23,500/MT ex-plant & INR 23,800-24,000/MT FOR Durgapur. According to the officials, inquiries are less at this offer prices.
3. Bhushan Power & Steel has sold out Pig iron at INR 24,000/MT (ex-plant) for Raipur & Raigarh, the officials reported. Now, offers for the day increased at INR 24,200/MT ex-plant.
4. Neo Metaliks in Durgapur – West Bengal has offered steel grade pig iron at INR 24,000/MT against last week at INR 24,000-24,200/MT. Foundry grade offers kept stable at INR 27,500/MT.
5. Tata Metaliks has offered foundry grade pig iron at INR 28,200/MT ex-plant, Kharagapur (East India) & excluding GST.
6. South India based private producer may revise offers soon however current offers are reported at INR 25,750/MT FOR Hyderabad.
7. Offers for Pooled iron are heard around INR 21,500/MT & for Granulated pig iron at INR 22,800-23,000/MT ex-works, Odisha.
8. Trade participants in North region – Ludhiana reported improved supply from the West & East India based manufacturers. The latest offers are reported for Steel grade at INR 25,800-26,000/MT & Foundry grade at INR 27,800-28,000/MT FOR & excluding GST. They mentioned that, foundry grade material being booked at around INR 27,000-27,200/MT of Vedanta Resources & Sona Alloys, hence local prices to soon come down when the material get delivered.
9. MMTC’s export tender on behalf of NINL for 15,000 MT basic grade pig iron heard to have received poor response due to low participation by global buyers. According to market sources report to SteelMint, the tender fetched bids at around USD 330/MT, FoB.
10. Vizag Steel, also known as RINL has reduced Steel grade Pig iron prices for Nov’17 deliveries by INR 1,000/MT (USD 15) to INR 24,300/MT (USD 377) ex-plant & excluding GST.
11. SAIL’s Durgapur Steel Plant (DSP) has offered steel grade material at INR 23,100-23,200/MT ex-plant & excluding GST.
12. Global pig iron export offers are heard around USD 335/MT, FoB Black Sea. Pig iron export offers from Brazil are heard around USD 340/MT, FoB.
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