Indian pig iron producers have concluded some export deals for sizeable volumes to western countries, with the highest share of exports bound for the USA, as per latest information available with SteelMint.
Reports are that around 170,000 tonnes (t) of pig iron exports tenders have been floated by the major mills, with most of these heard concluded. Market sources indicated that these deals have taken place at around $800/t, FoB levels, however, it could not be confirmed till the time of publishing this report.
Strong demand from western nations
Demand for pig iron, especially from the USA, has turned active on growing supply concerns even as the Russia-Ukraine war escalates.
The war has taken a toll on global pig iron trade, thereby increasing concerns over supply in the short-term.
It may be mentioned that Russia and Ukraine constitute more than 50% i.e. 7 mnt of the total pig iron exports globally. The total global seaborne trade in pig iron is estimated at over 13 mnt per annum.
Russia saw a 5.5% y-o-y drop in pig iron exports in 2021 to 3.92 mnt as against 4.18 mnt in the preceding year, as per data maintained with SteelMint. The drop was majorly because of decreased imports from China against the backdrop of production curbs.
On the other hand, Ukraine exported 3.18 mnt last year, up 2.4% y-o-y.
Europe, the USA and Turkey were the major importers during this period.
Indian demand may rise
Indian pig iron demand is expected to rise but mills have limited spare capacities. Interestingly, India increased pig iron exports by over 50% y-o-y to 1.3 mnt in 2021 from 0.86 mn t in 2020 by catering to emerging markets, South Korea and Turkey, as well as ramping up exports to the traditional buyers like the USA.
India’s installed pig iron capacity is 7 mnt while actual production is around 4.8 mnt.
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