Indian Pig iron offers remained stable amid financial year closing. However market participants anticipate price cut in April.
As FY15 is about to end, Indian Pig iron manufacturers are hesitant to experiment with prices. Hence, they have kept offers unchanged for the remaining days.
Merchant manufacturers are about to review prices in the first week of April. Also primary firms like SAIL, NINL, RINL are expected to announce their fresh offers in the first week of Apr’15. SAIL, whose offer got expired on 17 Mar’15 (of around 80,000MT), is yet to make a new offer.
Market participants are expecting price cut in the month of April owing to lower realizations in export market. A recent deal by a government owned company was settled at USD 255-260/MT FoB East coast of India. Looking at export realizations, large manufacturers may consider some price cut for the month of April.
Contradicting to the above sentiments a trader quoted, “Market is expected to rise slightly in the Mid April on the back of new projects which would be starting in new fiscal.
Looking at major markets like Bengal, Odisha & Chattisgarh, offers remained unchanged in the range of INR 18,000-19,500/MT, except in Raipur, where manufacturers have reduced their offers to INR 20,000/MT from INR 20,500/MT ex-works (last week).
Trade wise
- A manufacturer at Durgapur is heard to have sold 1,500 MT of steel grade Pig iron at INR 19,000/MT, ex-plant
- Tata Metaliks cuts production of Foundry grade Pig iron; currently occupied in delivering steel grade Pig iron which was sold at INR 19,000/MT, ex-Plant- Trade Sources
- Tata Metaliks offers Low Silicon grade Pig iron (Si content 1-1.5%) at INR 20,000-20,200/MT, ex- plant at Kharagpur to foundries based in Assam & Punjab- Trade Sources
- SAIL’s IISCO sold 4 rakes to Punjab at INR 18,200/MT, ex-Burnpur, with a rebate of INR 250/MT.
- Foundry grade offers at Ludhiana are in the range of INR 26,600-27,000/MT (including Excise).
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