Domestic purchase inquiries for pig iron have presently slowdown to some extent. However, despite bearish demand producers have maintained offers owing to supported overseas trade, high raw material prices and some short supply for the material.
According to market sources report to SteelMint, a major Indian pig iron exporter has recently closed an export tender for 6,000 MT non-alloy pig iron at around USD 355-360/MT, FoB India. This is higher against our last price assessment made at USD 345-350/MT, FoB India.
The pig iron producers claimed that, “due to falling domestic billet offers fresh purchases by steel mills have slowdown and may continue to remain subdued until holiday season ends and clarity in market trends begin to emerge.”
Notably, the Indian billet prices which increased by about INR 1,500-2,500/MT in the beginning of the week have reduced in the same proportion by end of the week due to limited trade activities. As a result of this inquiries for raw materials have also been limited.
SteelMint’s latest price assessment for Steel grade Pig iron stood at INR 27,500-27,800/MT ex-Raipur, INR 26,500-26,800/MT ex-Durgapur, INR 26,000-26,500/MT ex-Odisha, INR 26,000-26,200/MT ex-Bokaro, INR 26,000-26,500/MT FoR Hyderabad & INR 28,500-29,000/MT FoR Ludhiana. The prices are excluding 18% GST.
Trade Log
1. According to trade participants, there has been short supply in the Raipur local market due to lack of fresh offers by NINL (Neelachal Ispat). Meanwhile, few small deals have been reported at around INR 27,500-27,700/MT.
2. Durgapur based Neo Metalics has concluded small deals for steel grade Pig iron at around INR 26,800/MT ex-plant.
3. Jindal Steel has offered Ferroshots (Panther shots) a key substitute of Pig iron at INR 26,000/MT ex-plant, Angul, Odisha. Steel grade pig iron is being offered by the producer at INR 27,000/MT ex-Raigarh.
4. Bokaro based Electro Steels a private producer reported fresh offers at INR 26,200/MT ex-plant & INR 26,600-26,800/MT, FoR (landed) Durgapur.
5. Bhushan Power & Steel is offering Pig iron steel grade at INR 26,500/MT ex-plant, Odisha.
6. Global coking coal prices continue to rise on supply crunch. In a week’s time, the offers increased by USD 15-16/MT to USD 262-264/MT FoB Australia for Premium HCC.
7. SteelMint’s pig iron export price assessment increased about USD 10/MT, W-o-W and are reported at USD 355-360/MT FoB India, USD 350-360/MT FoB Brazil and USD 360-365/MT FoB Russia.
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