Domestic Pig iron
market:
NINL: On April 8:
Prices (basic, in Rs/MT) for N1 & N3 grade were lowered by Rs 500/MT with no discounts.
N1 (Si Up to
1.24%) 22,000 – Mostly used for exports purposes, N2 (Si 1.25%
to 1.79%) 22,500 & N3 (Si 1.8% to 2.2%) 23,500
On
the 12th: Prices were raised by Rs 500/MT on improvement in bookings and response was good
at new price levels too. Demand
was weak in Q1, which improved before the arrival of monsoon.
RINL: Did not
resume Pig iron sales on the reason that
fulfillment of prior commitments regarding export orders was important.
Secondary Pig iron
producers:
As on April 30, Indian
Pig iron (steel) prices dropped by Rs 500/MT; moved up by Rs
5,00/MT (foundry) M-o-M. Indian Pig iron index moved up by Rs
391.67/MT M-o-M.
Week 1: Prices remained
unaltered due to no
change in demand, selling cost was not much higher than production cost and
that buying volumes would immediately come down if prices moved up.
Week 2: Pig iron
(steel) prices moved up by
Rs 200-500/MT on supply (low) and demand (decent) mismatch; foundry
grade material prices had fallen by Rs 200-1,000/MT due to poor off
take.
Week 3: Buying activities
was decent for steel grade material; supply was low on limited iron ore availability and prices
stepped up by Rs 200-1,000/MT; foundry grade Pig iron
demand as well as prices were stable.
Week 4: Steel
grade Pig iron prices turned down by Rs 200-300/MT; foundry grade prices by Rs
500-1,000/MT on weak buying interest.
Pig iron monthly output
had come down to 3,000-4,000 tons at Rourkela, but good demand
accounted for around 8,000 tons in April; excess stock met with price cut.
In South, Pig iron plants
utilized 60-70% of total
capacity; were selling below the cost of production.
Indian Pig iron exports:
On April 3, NINL’s
30,000 tons Pig iron (steel) export
tender received highest bid at $413/MT FOB Paradeep Port from Stemcor (London)
as overseas Pig iron prices were anticipated to strengthen.
The tender was floated
on March 21 and the deal finalized
was finalized on April 9.
New Pig iron
exports tenders:
On April 8, RINL floated
30,000 tons of Pig iron (Si 0.05%) exports tender. Technical bids, was to open on the 22 on earlier, the date was extended to 30th due to no fresh stock
available.
Pig iron importers might
bid around $407/MT FOB Vizag Port, as in the international market – scrap prices have not
moved up, upswing in demand and upside in prices of Pig iron is not foreseen
and demand from steelmakers in Korea is decent.
On April 29, NINL
floated 30,000 tons Pig
iron (Si 1.24%) export tender, with another 30,000 tons as optional. Submission
and opening of technical bids is May 13.
Tata Metaliks exported 1,000 tons of containerized Pig
iron (foundry) at prices below domestic offers to Bangladesh.
A South West region
based Pig iron (foundry) producer is exporting 200 tons to Far East region as realizations are
better than selling into North India.
Exporters in Chennai decided to hold exports deal looking at quite low offers from
importers.
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