Steel grade pig iron supply in Indian domestic market remained on the lower side as few merchant producers have halted sales. Thus, supply crunch of pig iron in north-east India has lead to sharp surge in price range.
Currently prices are trending at over 9-month high in Durgapur at INR 28,300-28,700/MT ex-plant. Similar price levels were recorded in Apr’19 end.
SteelMint learnt that, couple of major merchant suppliers from Jharkhand & Odisha halted supply since mid Dec’19 on account of some technical issues in their GST billing system. In addition, it is also marked that integrated steel plants in Odisha have reduced sales by more than 50% of pig iron, pooled & panther shots looking at better demand/margins in finished products. Hence, they are largely making finished steel products & billet as well.
Coming to central region – Raipur, where the pig iron prices reach almost a year high on account of continuous scarcity with the standalone furnaces due to no fresh offers by SAIL’s Bhilai Steel Plant (BSP).
Participants mentioned that, looking to short supply the private plants are taking advantage and offers from the mill are hovering at around INR 29,000/MT ex-plant, Raipur. However, as per them there are no major deals as traders are dealing at slight less price range than through the manufacturer.
Following, the constant rise in price in central & eastern regions, the traders in northern India have raised offers and the fresh offers of steel grade material reported at INR 30,000-30,300/MT and foundry grade at INR 31,500-31,700/MT FoR Ludhiana.
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