With the end of July, Steel grade Pig iron manufacturers have corrected prices again and are trying hard to get rid of the existing stock which are in big quantities.
As on today, Pig iron offers have weakened by up to 8% M-o-M and by 15% Y-o-Y.
In the southern and eastern region, prices of Foundry grade material is down by Rs 500-700/MT.
And, that of Steel grade material dropped by around Rs 1,000/MT in Jharkhand.
Pig iron plants would run at break even, provided any sharp correction in prices take place.
Production cost has to come down as expensive Iron ore lumps and Coal have made things worst.
Generally during the beginning of Q2, Pig iron offers came down as monsoons hits trading activities and also as infrastructure development is at its lowest.
In the present day, slump in market exists and prices of both semi finished and finished steel products are not picking up.
Most of the Foundry grade Pig iron producers are not holding much of stock as of now and have closed down production due to falling prices and poor demand.
Tata Steel's Pooled iron prices dropped by Rs 300/MT to Rs 19,000/MT (ex works Jamshedpur) and is being offered through e-auctions.
Though, it is being sold out in good quantities but the irregular shape as compared to Pig iron does not benefit furnaces much.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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