Indian pig iron producers have further raised their offers by around INR 200-500/MT (USD 3-8) in last 2-3 days. Short supply by private producers amid production halts by a couple of big merchant suppliers, has led to surge in domestic pig iron prices.
SteelMint learnt that, most private producers in Central & East India have cut sales due to either none availability or diversion of hot metal towards production of Finished steel products rather than pig iron.
Neelachal Ispat (NINL), which is India’s largest steel grade Pig iron manufacturer, continues to remain out of operation since the last 2 to 3 months due to ongoing capital repair works and is expected to restart production after March.
Another large producer of Foundry grade pig iron- Vedanta Resources (known as Sesa Goa Ltd) has reduced supply in open market due to expected Iron ore crisis in near future following Supreme Court ordered cancellation of mining leases in Goa. Vedanta’s Iron Ore mines which have a total production capacity of 5.5 million tonnes per annum and has been a primary source of raw material for the company would also cease operations.
Officials from Jindal Steel (JSPL) also stated that no stock for Granulated Pig iron, Pooled iron & Pig iron were available due to advance bookings amid priority for home consumption. The last trades have been made for Granulated Pig iron (panther shots) at INR 27,500/MT and Pooled iron at INR 26,500/MT, ex-Angul, Odisha.
SteelMInt’s price assessment for Steel grade in current week stood – at INR 29,500-29,700/MT ex-Durgapur, INR 29,800-30,200/MT ex-Raipur, INR 29,000-29,500/MT ex-Odisha & INR 27,500-28,000/MT ex-Vizag/Hyderabad.
In context to exports the offers remain firm around USD 360-370/MT FoB India & USD 350-360/MT FoB Black Sea. SteelMint’s previous assessment was at around USD 380-385/MT FoB India.
Key Updates
1. Raipur – Central India based suppliers are offering steel grade pig iron in the range of INR 30,000-30,500/MT FoR. The last trades by the market participants are reported at INR 29,800-30,000/MT.
2. Neo Metaliks in Durgapur – West Bengal has kept offers unaltered and are assessed at INR 29,500-29,700/MT ex-plant.
3. Bokaro based Electro Steel which produces 25,000 tonnes of steel grade material had concluded a deal of 1,000-1,200 MT steel grade Pig iron at around INR 29,750/MT ex-plant.
4. Girdih based Pig iron producers have kept offers at firm level amid improved demand. The steel grade offers are reported at INR 29,800-30,000/MT ex-plant & excluding GST.
5. Coking coal offers continue to rise globally over good demand from mill owners. The latest offer for the Premium HCC is assessed at around USD 245/MT CNF India, rise around USD5/MT, W-o-W.
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