Indian Pig Iron Market witness steady Correction

Last week of the current financial year compelled Indian Pig iron manufacturers to correct prices by INR 200-400/MT.

Indian Pig iron market is currently experiencing a subdued demand. There has been slow down in project activities of many public and private entities in the market.

General election coupled with financial year end pressure, are responsible reasons for low trading volumes in the market.

In addition, major player like RSP and NINL are offering steel grade at cheaper rate than the offers going in the market. Hence, other market players have to follow the suit.

RSP is currently nursing its domestic consumers through an open offer at INR 23,000/MT for whole April month. The bookings have already started and they will remain open till 27 Mar, 2014. In effect, its nearby plants in Rourkela, Cuttack and Bokaro have corrected their prices by INR 200, INR 400 and INR 500/MT respectively.

Sluggish demand has affected central India too, so manufacturers in Raigarh and Raipur have to reduce their prices by INR 100-200/MT.

Owing to oversupply in Ludhiana, market here is trading lower at INR 30,100-30,200/MT (VAT extra).

[su_quote cite=”Trader based in Ludhiana”]Market participants are receiving the delivery of the material now, which they had booked during 3rd – 12th March i.e. the time when market was trading at higher level. This sudden increase in supply is creating pressure on price.[/su_quote]

Domestic Offers for Pig Iron

Basic Price in INR/MT
Ldh: VAT extra
Kol: Incl freight only
Dgp: Tata Metaliks