Indian Manufacturers kept Pig Iron Prices on hold

Pig iron prices in major Indian markets remain stable this week, except Chhattisgarh, which witnessed a fall of INR 200-500/MT.

After realizing the threat and competition from Odisha based Pig iron plants, manufacturers in Raigarh & Raipur (Chattisgarh) have trimmed their offers upto INR 500/MT and offering at INR 19,500/MT & INR 20,500/MT respectively. Plants at Cuttack (Odisha) are offering Pig iron at INR 18,000-18,100/MT, ex-works.

Whereas, in other markets like Durgapur, Burnpur, Ludhiana & Vizag prices remain unchanged. Although, traders in Durgapur experiencing dull demand are speculating a further price fall by INR 200-300/MT, in the coming week to INR 18,900-19,000/MT, ex Durgapur.

Pig iron market in Ludhiana remains stiff on the back of sellers’ assertiveness towards offers explaining that they were already offering Pig iron (particularly foundry grade) at the lowest and selling below these levels won’t be a feasible deal for them. Prices in Ludhiana for steel grade Pig iron touched INR 24,000/MT last week but currently are at INR 24,500/MT, delivered. Here, foundry grade Pig iron was sold at lowest INR 25,500-26,000/MT last week, which is back to the level of INR 26,500-27,000/MT (delivered) this week.

Talking about SAIL (RSP), the company offered 80,000 MT Pig iron at INR 18,100-18,600/MT till 17 Mar’15, allowing discounts upto INR 2,000/MT on base price of INR 20,100/MT. Fresh offer of the company is yet to open.

Neelachal Ispat offers N1 grade at INR 18,100/MT (Ex- Works)

Neelachal Ispat is offering 10,000 MT steel grade Pig iron at INR 18,100/, ex- works (Cuttack, Odisha), without any quantity discounts for the rest of Mar’15. The company earlier offered the same till 20 Mar’15, which it further extended to 31 Mar’15.

Pig Iron Export Tenders

RINL, for its recent export tender of 30,000 MT, received bids at USD 255/MT FoB Vizag. Sources mentioned Prime Carbon GmbH was the only bidder in the event and the company (RINL) is looking forward to the deal. However there is no official confirmation from the company.

RINL for its last export tender received bid at USD 263/MT FoB Vizag again from Prime Carbon itself.

Another export tender of MMTC for 40,000 MT is in the pipeline. This tender will expire on 6 Apr’15. The company’s last export tender failed due to lack of participants.

Indian Pig Iron prices (in INR/MT) as on Week 13, 2015 ( 23 Mar – 29 Mar)

Source: SteelMint Research
* FOR price, including ED