Pig iron market in India witnessed mixed sentiments. Offers remain in the range of INR 18,000-20,500/MT, ex-works.
Pig iron manufacturers in central India, like Raigarh and Raipur, kept their offers unchanged at INR 19,800/MT & INR 20,500/MT, ex-works respectively. The companies here had already raised their offers by INR 200-300/MT last week, which continued this week.
Whereas offers in another major market, Durgapur, plunged by INR 200-300/MT and reached INR 19,000-19,200/MT, ex-works, owing to sudden fall in demand.
A Durgapur based trader said, “Right now, there is aggressive booking for only IISCO’s MoG Pig iron in market, owing to its lower pricing. Rest all remain dull.”
Currently MoG Pig iron at IISCO (SAIL) is being offered at INR 18,400/MT, at a INR 200 increase in price, ex-Burnpur.
Around 5 rakes of MoG Pig iron was delivered to Punjab in past 20 days at around INR 24,500-24,600/MT, delivered (including ED). Sources mentioned that the major purchase was made by foundry casters. They explained that it takes the manufacturers only INR 1,000/MT to make foundry grade from Steel grade. Whereas the Foundry grade Pig iron offered to Punjab by manufacturers like Sesa Sterlite, Sona Alloys & Tata Metaliks are around INR 26,500-27,000/MT, delivered (including ED), which is dearer by INR 1,000/MT.
Traders foresee Price Cut in May
Pig iron traders anticipate slight price fall in May owing to rising availability of Iron ore and falling Sponge iron prices in domestic market. Participants are hopeful that mining activities will resume shortly in Odisha, which will increase supply of Iron ore.
Indian Pig iron Highlights
- Primary manufacturers kept Pig iron prices unchanged. NINL at INR 18,000-18,400/MT, ex-Cuttack while RINL at INR 19,300/MT, ex-Vizag
- RSP (SAIL) is yet to declare Pig iron Price
- Mesco offers Steel grade Pig iron at INR 18,400/MT, ex-Cuttack
- Jharsuguda based manufacturer offers Pig iron at INR 18,900-19,000/MT ex-works
- Giridih based manufacturer kept offers unchanged at INR 18,500/MT, ex-works
- MMTC to settle export tender at USD 265/MT FoB Paradip
- RINL receives export bid at around USD 250/MT FoB Vizag
- Pig iron offers remain unchanged at USD 250-255/MT FoB Black Sea and around USD 275-280/MT CIF Europe.
Indian Pig Iron Prices as on 27 Apr’15
| Steel Grade Market | Basic Rates | W-o-W Change | Foundry Grade Market | Delivered Rates# | W-o-W Change |
| Cuttack | 18,000-18,400 | 0 | Ludhiana | 26,500-27,000 | – 500 |
| Durgapur | 19,000-19,200 | – 200-300 | Rajkot/Ahmedabad | 28,400-28,500 | 0 |
| Raigarh | 19,800 | 0 | Mumbai | 29,000 | 0 |
| Raipur | 20,500 | 0 | Kohlapur | 28,000 | 0 |
| Vizag | 19,300 | 0 | Belgaum | 28,000 | 0 |
| Giridih | 18,500 | 0 | Koppal | 28,000 | 0 |
| Pune | 21,500-22,000 | 0 | Coimbatore | 26,500-27,000 | 0 |
| Goa | 20,500 | 0 | |||
| Ludhiana# | 24,500 | 0 |
Prices in INR/MT
#including excise 12.5%
Source: SteelMint Research
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