During the week, private pig iron manufacturers in East India are forced to reduce prices due to limited inquiries. However, in Central India offers are more or less firm owing to low availability of material amid supported demand.
The latest offers for Steel grade pig iron in East India – Durgpaur/Bokaro/Giridih reported at INR 23,300-23,500/MT which was around INR 23,800-24,000/MT during start of week. Meanwhile, in Central India – Raipur with stability in prices it stood at INR 25,000-25,200/MT.
According to market participants, SAIL’s, Durgapur Steel Plant (DSP) is also offering Pig iron at low price of INR 23,000/MT which is another major concern for private pig iron producers in East India specifically in Durgapur as buyers has shown interest towards SAIL’s cheaper priced material.
The offers in North India- Ludhiana also fell around INR 500/MT due to price corrections in East market. The latest offers are assessed at INR 25,000-25,300/MT for Steel grade & INR 27,000-27,400/MT for Foundry grade, FOR & excluding GST.
Steel Grade Trade Updates
1. The stockiest in Raipur – Central India are offering Pig iron at INR 25,000-25,200/MT while by the producer end the offers are heard at INR 25,250-25,500/MT ex-plant & excluding GST.
2. Electro Steels (Bokaro) is offering steel grade material at INR 23,300/MT ex-plant & INR 23,500/MT FOR Durgapur. According to the officials, inquiries are average on reduce prices.
3. Bhushan Power & Steel from Jharsguda, Odisha is offering Pig iron at INR 24,000-24,200/MT ex-plant and inquiries are reported at INR 24,000/MT.
4. Neo Metaliks in Durgapur – West Bengal has offered steel grade pig iron at INR 23,500-23,600/MT against last offers of around INR 23,600-23,800/MT.
5. Tata Metaliks has offered foundry grade pig iron at INR 28,200/MT ex-plant, Kharagapur (East India) & excluding GST.
6. Tata Steel has offered Pooled iron at INR 21,500-21,700/MT (ex-plant, Jamhedpur) & Ferroshots at INR 22,800-23,000/MT (ex-plant, Odisha); excluding GST.
7. Trade participants in North region – Ludhiana reported good availability of Pig iron for both Steel & Foundry grade. Also said that they have booked bulk quantities of foundry grade at around INR 27,000/MT FOR from West & East India based producers.
8. According to the sources, SAIL’s IISCO deal for a rake steel grade pig iron is under negotiation mode with Howrah based manufacturers at around INR 23,000/MT ex-plant & excluding GST.
9. RSP (Rourkela Steel Plant) tender held on 16th Nov to sell about 4,000 MT steel grade pig iron have received average response. According to sources, the company was able to sell only 1,500 MT pig iron and the remaining material is unsold. The bid price of the tender was at INR 22,900/MT.
10. According to customs data maintained with SteelMint, Vedanta is to export 30,000 MT pig iron from Goa. As per market sources the vessel is likely to be shipped to South Korea and the deal was heard to have concluded around USD 335-340/MT, FoB India. However no confirmation regarding deal price and destination was received from company officials.
Steel grade Pig iron reference prices as on 17 Nov’17
| Particular/Delivery | Prices | Min | Max | 1W | 1M |
| Ex-Bokaro | 23,300 | 23,100 | 23,300 | 23,500 | 22,500 |
| Ex-Cuttack | 24,000 | 23,800 | 24,000 | – | – |
| Ex-Durgapur | 23,500 | 23,300 | 23,500 | 24,000 | 22,300 |
| Ex-Giridih | 23,300 | 23,100 | 23,300 | 23,500 | 21,800 |
| Ex-Hyderabad | 25,500 | 25,500 | 25,750 | 25,500 | 25,200 |
| Ex-Jharsuguda | 24,000 | 23,800 | 24,200 | 23,500 | 23,250 |
| Ex-Ludhiana | 25,200 | 25,000 | 25,300 | 26,150 | 25,250 |
| Ex-Raigarh | 24,700 | 24,500 | 25,000 | 24,700 | 24,200 |
| Ex-Raipur | 25,000 | 24,800 | 25,300 | 25,000 | 24,500 |
| Ex-Rourkela | 22,900 | 23,000 | 22,900 | 23,000 | NA |
| Ex-Vizag | 24,100 | 23,800 | 24,300 | 24,600 | 25,100 |
Basic prices in INR/MT
Source: SteelMint Research
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