Indian Pig Iron Trade Log – Week 7

Indian Pig iron prices have corrected by upto INR 500/MT W-o-W, except in few markets like Raipur and Raigarh. Demand for Pig iron continued to remain subdued. Declining Scrap prices in the global market and price cut by domestic Iron ore miners, have given room for further correction.

Global Pig Iron Prices witness sharp fall

Pig iron prices fell sharply by USD 20/MT in the global market amid declining Scrap prices. Pig iron prices are assessed at USD 280-290/MT, FoB Black Sea. Whereas, India’s last export tender in the month of Jan’15 was concluded at USD 310/MT, FoB East Coast of India.

There are two more tenders of about 40,000 MT (30,000 MT lot +10,000 MT) each is in pipeline by Indian manufacturers scheduled for February & March, 2015.

Looking at falling Pig iron and Scrap prices in the global market, it is expected that Indian tenders are unlikely to get any enthusiastic response. Domestic manufacturers would be left with no other option except to cut prices in the local market, if they fail to conclude it.

Trade Log

1. Durgapur (West Bengal) based manufacturers offers Steel grade at INR 19,600-20,000/MT ex-works; down by INR 500/MT from last week
2. Raipur and Raigarh based manufacturers maintain offers at INR 21,300/MT and INR 20,800/MT ex-works respectively
3. Vizag Steel has reduced Pig iron prices by INR 1,000/MT for Feb’15 deliveries. Current offer is INR 20,300/MT (ex-Vizag)
4. Global prices have corrected by USD 20/MT W-o-W, FoB Black Sea and assessed at USD 280-290/MT

Pig Iron Prices as on Week-7 (9-15 Feb’15)

*Prices in USD/MT; rest in INR/MT
Source: SteelMint Research