Indian Pig Iron Market – Week 49

Indian Pig iron prices remain subdued on the backdrop of low demand and increasing inventory at large merchant manufacturing units like NINL & RINL.

Week-49 began with a dull start as RINL reduced prices by INR 1,000/MT and other manufacturers in Raipur & Raigarh also followed suit with price correction of INR 200-300/MT this week.

Indian prices were studied to be under pressure mainly because of falling global steel prices. Pig iron exports from India also witnessed a sharp fall in past few months, owing to poor response from the global participants. This stocks blockage due to failure in exports,  has built selling pressure in the domestic market, resulting in huge domestic price corrections.

Key Highlights

• RINL cut offers by INR 1,000/MT for December deliveries. Current offers at INR 22,600/MT ex-Vizag
• Raigarh based two manufacturers are offering Pig iron at INR 22,000/MT ex-works
• Induction furnaces based in Raipur mentioned that they have few offers for Pig iron at INR 22,800-23,000/MT ex-works
• SAIL is offering 25,000 MT Pig iron at INR 21,400-21,500/MT ex-Rourkela
• Indian exports of steel grade Pig iron were assessed at USD 330/MT FOB Paradip port
• NINL & RINL export tenders are in pipeline; closing on 12 & 18 Dec, 2014 respectively
• Russian/Ukraine export offers have reduced due to depreciating currency. Prices assessed at USD 345/MT FOB Black Sea
• Global Scrap prices showed some stability in recent weeks, which may support Pig iron prices in market

Monthly Price Change of Pig Iron