Domestic Pig iron manufacturers hopeful for stability as global offers show improvement.
Pig iron prices in central India, mainly Raigarh, fell by INR 300-400/MT and are at INR 18,600-18,700/MT, whereas prices in Raipur fell by INR 200-300/MT and are at INR 19,100-19,300/MT, ex-works.
Prices in Durgapur also slide by INR 200-300/MT with manufacturers selling steel grade at INR 17,800-18,000/MT, ex-Durgapur. On the other hand, prices in Odisha plants corrected accordingly, after the prices cut by NINL in Pig iron upto INR 500-700/MT.
Market participants are waiting for SAIL-RSP’s fresh offers, which are likely to be announced next week. In May, SAIL offered 75,000 MT steel grade Pig iron at INR 17,400-17,900 /MT, ex-Rourkela which was lower by around INR 700/MT from its previous offers.
Indian Pig Iron Producers Anticipate Stability in Domestic Prices
Indian Pig Iron producers expect stability in domestic prices owing to rising offers in global market. Recently Russian and Brazilian suppliers raised their offers by USD 10/MT looking at strong scrap prices.
Current prices for basic grade Pig iron from Russia are at USD 270/MT FoB Black Sea, Brazilian Pig iron at USD 265/MT, FoB main ports of Brazil and Indian at USD 262/MT, FoB East Coast of India.
Indian Pig iron exports were recorded at 0.6 MnT in FY15 against production of 9.7 MnT saleable Pig iron.
Pig Iron Prices as on 23 May’15
| Particular/Delivery | Prices in INR/MT |
W-o-W | M-o-M |
| Ex-Cuttack | 17,500 | -200 | -900 |
| Ex-Durgapur | 17,800 | – 200 | -1,400 |
| Ex-Raigarh | 18,600 | – 600 | -1,200 |
| Ex-Raipur | 19,100 | – 400 | -1,300 |
| Ex-Rourkela | 17,900 | 0 | -700 |
| Ex-Vizag | 19,000 | 0 | -300 |
| Ludhiana# | 23,300 | 0 | -1,200 |
| Particular/Delivery | Prices in USD/MT | W-o-W | M-o-M |
| FoB Brazil | 260-265 | + 4 | -7 |
| FoB India | 262 | + 2 | -7 |
| FoB Black Sea | 270 | + 12 | + 20 |
#delivered prices, including ED
Source: SteelMint Research
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