Indian pig iron industry reported mute demand from the local mills due to sharp fall in billet prices by INR 800-1,000/MT in a week. This has narrowed down price gap between billet & pig iron.
On an average there used to be price gap between the products of around INR 4,000/MT, which is currently hovering at INR 2,000-3,000/MT in Raipur & Durgapur, where furnaces also melts close to 10% pig iron to produce Ingot/Billets.
However in current circumstances, the most of Ingot/Billet producers have halted fresh bookings of Pig iron looking at high production cost and are in wait & watch mode for future bookings.
Similar things were confirmed by suppliers end, hence assumptions are high that weak demand may put pressure on prices and private mills to cut pig iron prices in coming days.
Further the pig iron producers stated that, prices to remain soft and assuming that NINL to cut prices, which may clear the market directions.
Neelachal Ispat Nigarm Ltd (NINL) is India’s largest pig iron producer is yet to float fresh domestic offers which are expected to be announce in coming week with slight reduction. The company’s last offers for steel grade pig iron was at INR 27,000-27,400/MT ex-plant, Cuttack (Odisha) and was expired on 11th May’19.
Trade Updates
— Officials from Neo Metaliks reported no major response at the offers of steel grade pig iron at INR 28,200/MT ex-Durgapur.
— Similarly a official from Jindal Steel’s sales department stated, no inquiries at the quotation of steel grade pig iron at INR 28,200/MT ex-Raigarh & panther shots(granulated pig iron) at INR 27,000/MT ex-Angul, Odisha.
— Further in Jharkhand, Electrosteels has hold fresh offers and primarily eyeing to complete dispatch of previous bookings which were received at around INR 27,500-27,700/MT ex-plant.
— Mesco Steels reported lessened demand from outside market at the offers of steel grade pig iron at INR 27,100-27,200/MT ex-Jajpur, Odisha.
— Traders in Northern India- Ludhiana mentioned that, arrival of material improved from the East & Western India and weak demand are forcing them to cut prices. The prices of steel grade pig iron in Ludhiana fell by INR 300-500/MT in a week and currently evaluated at INR 29,800-30,000/MT.
— In Central region, Raipur & Raigarh price range slightly lower to INR 28,200-28,300/MT FoR.
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