Export prices for India-origin pig iron increased this week in line with rising scrap prices in seaborne market. However pig iron buying interest kept low and no deals were reported at new levels.
SteelMint’s assessment for non-alloy steel grade pig iron is assessed at USD 345-350/MT FOB, which was USD 335-340/MT FOB last week.
Indian producers seem to be in no rush to seek buyers, as domestic realizations are better than exports. Also most of them are reportedly sold out until December.
Notably domestic prices have increased upto INR 700/MT (USD 11) in last 10-15 days due to rising billet prices and unavailability of pig iron from Neelachal Ispat Nigam Ltd (NINL), which is the largest merchant seller of steel grade pig iron in India. NINL’s plant is under maintenance and will resume production in first quarter of 2018.
Market participants feel that prices have gone up high and will not be accepted by electric arc furnaces, considering the fact that graphite electrode prices still remain high.
“Most of the exporters have already booked material for Dec shipment and as such no real immediate demand for pig iron is seen coming up from overseas buyers”, shared a participant from west India based pig iron manufacturing company.
Trade Highlights
1. MMTC’s 5,000 MT pig iron export tender heard to have received highest bid at around USD 338/t FOB India, but it seems company may cancel the tender.
2. Couple of private mills are negotiating for two parcels of pig iron. Industry estimates price level to be in the range of USD 345-350/MT FOB India.
3. NINL had offered around 11,000 MT of pig iron in domestic market at a price level of Rs 23,800/t (USD 369). According to traders company has managed to sell almost entire quantity at offered price.
4. CIS pig iron export offers are heard around USD 335/MT, FoB Black Sea
5. Indian pig iron exports rise around 350% in first 11 months of 2017 against same period preceding year
6. Imported scrap prices in Turkey have increased by USD 22/MT in a week’s time and current assessment for US origin HMS (80:20) stands at USD 350/MT, CFR Turkey
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