* Indian Pig iron prices correct as suppliers out number buyers
* India’s largest merchant Pig iron manufacturer, Neelachal Ispat, to resume operations in April with improved efficiency
* Indian domestic Pig iron prices are trading at a premium of USD 35-40/MT against global prices
Domestic Pig iron prices continue to fall as private producers improve supply leading to a strong competition among sellers. This is being considered as one of the strongest reason behind fall in prices and specifically in Central and East India.
According to SteelMint assessment the latest price fall is about INR 500/MT (USD 8) in East India – Durgpaur and Jharkhand and INR 800-1,000/MT (USD 12-15) in Central Region – Raipur.
The latest offers for steel grade Pig iron are reported at INR 28,500-28,700/MT ex-Durgapur/Bokaro/Giridih & INR 30,000-30,200/MT ex-Raipur which was last week at INR 29,000-29,200/MT ex-Durgapur/Bokaro/Giridih and about INR 31,000/MT ex-Raipur; prices slump up to INR 1,000/MT (USD 15).
The prices of Coking coal one of the key raw materials for Pig iron production, also dipped in line with healthy supply and low demand by world’s largest consumer – China. Currently, the Australian Coking coal prices are hovering at USD 215-217/MT as opposed to USD 233-235/MT, FoB reported start of Mar’18.
Industry participants are estimating prices would remain under pressure as domestic supply is to rise following resumption of Neelachal Ispat (NINL) which is India’s largest Steel grade Pig iron manufacturer. The pig iron manufacturer is expected to operate at its full capacity of 1.1 MnT pa post capital maintenance repair.
Offers through Producers
1. Raipur – Central India based suppliers are offering steel grade Pig iron of outside states at INR 30,000-30,200/MT FoR and excluding GST.
2. Bokaro based Electro Steel offers reduced to INR 28,600/MT which was last week at INR 28,800-29,000/MT ex-plant.
3. Durgapur based Neo Metalics has reported latest offers for steel grade Pig iron at around INR 28,600-28,700/MT against last trading at INR 29,000-29,200/MT ex-plant. Foundry grade pig iron offers being reported by the producer at INR 31,800-32,000/MT, ex-plant.
4. Girdih based Atibir Industries have reported fresh deals at around INR 28,500-28,700/MT as against last week at INR 29,000/MT ex-plant.
5. SAIL’s IISCO offers for Steel grade heard at around INR 28,500/MT ex-plant.
6. According to market participants, there are no fresh offers by Tata Steel and Jindal Steel for Pooled iron and Granulated Pig iron due to limited stock with the producers. The last offers of Granulated pig iron was heard at INR 29,000-29,500/MT ex-plant, Odisha.
7. Trade participants in North India – Ludhiana indicated further fall in pig iron prices due to low prices in major source markets. The latest offers for steel grade are hovering at INR 31,000-31,200/MT and Foundry grade at INR 32,000-32,300/MT FoR and excluding 18% GST.
8. Neelahcal Ispat (NINL) is expected to resume operations in April, the company’s blast furnace is on capital maintenance since December 2017.
Steel grade Pig iron prices as on 19 March 2018
| Particular/Delivery | Prices | Min | Max | Change | 1W | 1M |
| Ex-Bokaro | 28,500 | 28,400 | 28,600 | – 900 | 29,400 | NA |
| Ex-Durgapur | 28,700 | 28,500 | 28,800 | – 450 | 29,150 | 28,867 |
| Ex-Giridih | 28,500 | 28,500 | 28,700 | – 800 | 29,300 | 29,150 |
| Ex-Hyderabad | 28,000 | 27,800 | 28,200 | – 150 | 28,150 | 28,000 |
| Ex-Ludhiana | 31,100 | 31,000 | 31,200 | – 300 | 31,400 | 29,567 |
| Ex-Raigarh | 30,000 | 30,600 | 31,000 | – 800 | 30,800 | 28,767 |
| Ex-Raipur | 30,100 | 30,000 | 30,200 | – 950 | 31,050 | 29,100 |
| Ex-Vizag | 28,300 | 28,100 | 28,500 | 0 | 28,300 | 27,300 |
Prices in INR/MT & Excluding 18% GST
Source: SteelMint Research
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