Indian Pig Iron Sales hit by cheaper Pooled Iron

Pig iron manufacturers in states such as Chhattisgarh, Odisha and West Bengal are witnessing quite poor off take over the last couple of weeks.

Though, NINL – the price setter of Indian Pig iron industry unchanged prices for June, secondary Pig iron makers pulled down prices.

Demand has not been good and prices of Basic grade material came down in the range of Rs 300-500/MT. Whereas, Foundry grade Pig iron offers have been unchanged except at Maharashtra, which is down by Rs 1,000/MT.

It is being difficult for Foundry grade Pig iron makers to maintain prices due to falling prices of Basic grade material.

Some of them are producing Basic grade material in small quantities to prevent losses. 

Prevailing Pig Iron Prices (Rs/MT):

Basic Grade

Odisha: 23,000-23,800

Chhattisgarh: 24,800

West Bengal: 23,500

Maharashtra: 24,750-25,000

Tamil Nadu: 23,500

Jharkhand: 23,000-23,800

Foundry Grade

Odisha: 24,500

Chhattisgarh: 26,800

West Bengal: 27,400

Maharashtra: 26,250

South India: 25,000-27,500

Jharkhand: 24,000-25,000

A couple of reasons resulting in poor Pig iron buying are:

Buyers based in states such as Chhattisgarh, Odisha and West Bengal, in the last fortnight, have preferred to buy cheaper substitute.

Tata Steel offering Pooled iron at Rs 22,000/MT (Ex works Jamshedpur), though, recovery from Pooled iron (about 90%) is less by around 6% in comparison to Pig iron (about 98%), demand is good for the former.

It has been heard that about 35,000 tons Pooled iron has already been sold by Tata Steel. It is currently holding 20,000-25,000 tons of unsold stock.

Production of Hot metal is in full swing and due to some issues with SMS operations, it is offering Pooled iron, which is irregular in shape in comparison to Pig iron.

On the other side, Vizag Steel is selling Basic grade Pig iron at Rs 22,100/MT (loaded to rakes) from Vizag.

The state owned Pig iron producer was offering Pig iron at Rs 22,500/MT in the beginning of May, which had later dropped to Rs 22,300/MT.

Domestic takers are placing booking orders for RINL's material in good quantities.