After a long gap, Indian large mills have raised pig iron prices and the current price hike by SAIL & Vizag Steel is about INR 500/MT (USD) for September deliveries, as reported by participants.
The latest price hike of pig iron attributes to significant price rise of met coke and steel prices by medium mills.
Pig iron prices of private producers increased by INR 1,500-2,000/MT (USD 21-29) in last 15-20 days and the met coke import offers, which is the key fuel for blast furnaces have increased to USD 400/MT which was at about USD 340/MT, CNF India a month back.
As per participants, the current prices of Steel grade Pig iron by SAIL hovering at INR 30,200-30,500/MT ex-plant, Burnpur/Durgapur – East India. However by Vizag Steel (RINL) it offered at INR 29,000/MT ex-plant, Vizag – South India.
Recently, TATA Metaliks also increased Foundry Pig iron prices by INR 800/MT (USD 11) for September deliveries and the fresh offers reported at INR 33,800/MT (USD 475) ex-plant, Kharagpur – East India.
As per an official of TATA Metaliks, market outlook is positive for pig iron industry as demand is expected to remain strong with end of monsoon as steel demand expected to grow on fast pace. Also spike prices of raw materials has given room to keep prices strong.
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