India, known as one of the leading producers and exporters of Pig Iron in the world, has registered a marginal dip in its annual pig iron output which fell by around 2% in financial year 2018.
As per data maintained by the SteelMint stats, the nation’s saleable pig iron production stood at 9,258,000 MT in FY 2018; declined about 2% Y-o-Y against 9,396,000 MT in FY17. Meanwhile, prior to this in FY16 it was about 9,572,000 MT.
India has an installed capacity of 11-12 MnT and the major producers in country are NINL (Neelachal Ispat Nigam Limted), Vedanta Resources, SAIL (Steel Authourity of India), TATA & RINL (VSP).
Factors leading to declined output –
— Neelachal Ispat Nigal Limited (NINL) which is the country’s largest Steel grade Pig Iron producer had stopped production since the month of December last year (2017) owing to capital repair works. The company has installed capacity of pig iron about 0.89 MnT per annum.
— Vedanta Resources earlier known as Sesa Goa Limited has seen its production going down by 9% Y-o-Y. In FY18 the company produced 646,000 MT as against 708,000 MT in FY17. The reason behind declined in production was reported – lower availability of met coke and strike by local contractors in first quarter of FY18.
Exports Rally about 33% –
During FY18, Indian bulk pig iron exports were recorded at 446,250 MT, which was 336,290 MT during the period of FY17, surge by 32.69% Y-o-Y, as per SteelMint’s stats.
– Exports have gained momentum in line with higher global Scrap, Coking coal & Billet prices amid absence of Chinese cargoes.
– Thailand remained the largest importer of Indian pig iron contributing around 40%, followed by US (12.51%) and Bangladesh (10.67%).
– MMTC was remained the largest export of Pig ion on behalf of NINL and exported about 220,500 MT pig iron, followed by Vedanta at 209,2500 MT and RINL at 72,000 MT).
– The major exports of Pig iron were done from the Indian ports of – Paradeep (43.79%), Mormugao (36.36%), Vishakhapatnam (12.51%), Jaigarh (6.08%) & Haldia (1.25%).
Estimates for Financial Year 2019
— Indian Pig iron production may report an increase during FY19 as the major pig iron producer in India – NINL’s production output to ramp up post the capital maintenance. As per company officials the company’s production of hot metal is likely to rise by as much as 30-40% as compared to earlier.
— Indian Pig iron exports may also see some boost as a substitute – scrap prices remained on the higher side in International market and are unlikely to witness any sharp decline with the ongoing tug of war between major economies with regard to tariffs. Also, steel production curtailment by China – world’s largest steel producer – is likely to boost demand for scrap & pig iron globally.
— Indian pig iron prices are expected to come under pressure in days to come as domestic supply is likely to improve with the NINL’s production resumption. As per reports, NINL may resume commercial sale in mid of May 2018, however company’s saleable pig iron output is yet to come in couple of weeks.
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