Demand for Indian pig iron export has improved on fresh buying from neighboring country, Bangladesh, SteelMint learned from market sources.
Indian pig iron export market was very quiet from last many month on low buying interest from overseas buyers and better domestic realisations.
According to sources, an Indian private mill has booked around 20,000 – 25,000 MT steel grade pig iron to Bangladesh at around USD 395-400/MT FOB levels.
In last tender floated by state owned trading house, MMTC, for 40,000 MT on 17 May’18, also fetched response above market expectation as bids went up to USD 390-395/MT FOB levels, but tender was finally cancelled as MMTC’s expectation was higher than that.
Post that MMTC has floated another tender of 40,000 MT which expired on 6th June. According to sources, tender received decent response and likely to get concluded.
What is driving demand?
India exports close to 400,000-700,000 MT pig iron every year, out of which around 60,000 MT is being exported to Bangladesh.
Because of proximity and low voyage time Indian pig iron is most preferred by Bangladesh based buyers.
Bangladesh mills have resumed imports of scrap and pig iron after a gap of one month, when steel prices were falling and mills had sufficient stock of ship generated scrap.
Now domestic steel prices have started stabilising and demand has started picking up, mills are back in the market and making aggressive bookings for imported scrap and Pig iron.
Global pig iron market
Pig iron export offers from CIS nations have edged up on limited shortages. Price assessment for CIS origin pig iron export is around USD 385-390/MT, FoB Black Sea. Pig iron import price assessment at Italy is around USD 405-410/MT, CFR.
Pig iron export price assessment from Brazil is around USD 400/MT, FoB basis.
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