Amid constant fall in domestic billet prices, private pig iron producers in Indian domestic market are under selling pressure on poor demand for the material.
As per furnaces, fresh bookings are on hold over narrowed down price gap between Ingot/Billet & Pig iron. Hence price corrections are awaited for future deliveries.
The current price gap between Induction grade Billet (100*100mm) & Pig iron (Steel grade) in Central India hovering at INR 1,000/MT (USD 14) & in Eastern India by about INR 2,000/MT (USD 28), which should be not less than by INR 3,000/MT (USD 43), manufacturers mentioned.
Industry participants assuming price reduction through the private producers and NINL as well over falling steel prices and poor demand at current prevailing offers. Neelachal Ispat (NINL) – India’s largest pig iron producer and known as price trend setter had floated last offers during Oct’18 end at INR 28,500-28,900/MT (USD 403-409) ex-plant, Cuttack, Odisha after which it took a maintenance shutdown.
Amid dull trades the prices for steel grade pig iron through the private producers stood – at INR 29,000-29,500/MT ex-works, Durgapur/Jharkhand, East India & INR 30,000-30,200/MT ex-Raipur/Raigarh, Central India. Meanwhile for same grade material prices in North India – Ludhiana hovering at INR 31,300-31,500/MT FoR.
SAIL is offering steel (basic) grade pig iron in merchant market from its Burnpur (IISCO) plant at around INR 28,800/MT & from Bhilai Steel Plant (BSP), Central India at INR 29,800-30,000/MT ex-works. The participants reported limited bookings at these offers.
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