Indian Pig Iron Prices notice Correction on Increased Supply

Failure of export tenders & growing participation of Primary units had led to increased availability of Pig iron in market and price corrections upto INR 600/MT this week.

Continuous failure in export tender of Pig iron has built pressure on Primary manufacturers. which the companies usually release by selling it in domestic market. This leads to over supply in market, hence the price correction.

Furthermore, increased participation of Primary producers in Indian market has made Secondary producers insecure. Selling Steel grade Pig iron by SAIL (RSP), NINL, IISCO, Tata etc at lucrative rates in Indian market had increased competition, resulting to price war.

Recently, IISCO at Burnpur was heard to have sold two rakes of MoG grade Pig iron at INR 18,200/MT and IISCO grade (steel grade) at INR 18,700/MT. TATA Metalliks, which is known for foundry grade Pig iron, has recently sold rakes of Steel grade Pig iron at INR 18,700/MT, ex-works to Guwahati and at INR 19,000/MT, ex works to Durgapur.

Primary producers at Cuttack & Rourkela are also offering material at lower levels of INR 18,000-18,100/MT. Looking into such discounted offers, producers at Raigarh (Chhattisgarh) have corrected their offers upto INR 400-500/MT this week, offering at INR 20,100-20,400/MT.
Also, a Raipur based Ingot manufacturer reported to have purchased Pig iron at INR 20,800/MT, ex-works. Offers at Raipur are in the range of INR 20,800-21,000/MT ex-works.

Steel Grade Pig iron Prices as on 19 Mar’15

*Discounts allowed on INR 20,100/MT (ex-works)
Source: SteelMint Research

[su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]MMTC has invited global tender for export of 40,000 MT Pig iron till 6 Apr’15. Its last tender had failed owing to no participation in the event. [/su_note]