Indian Pig Iron Prices Corrected upto INR 1,400/MT in May

Indian manufacturers cut pig iron offers on increased supply and lower exports.

Pig iron prices in Indian market have declined by upto INR 1,400/MT in May, on account of rising supply from primary manufacturers and lower exports.

State owned steel maker, SAIL (RSP) made a price cut of INR 1,100/MT in the month of May. The company had offered total 150,000 MT Pig iron in May. Current offers are at INR 17,500/MT, with quantity discounts of INR 400/MT, expiring on 2 June ’15.

Similarly other primary plants like Neelachal Ispat, SAIL-IISCO have also reduced offers by upto INR 500/MT in May. The offers are at INR 17,500-17,700/MT, ex-Cuttack (quantity discounts upto INR 400/MT) and INR 17,700/MT, ex-Burnpur.

Other private manufacturers cut their prices to an extent of INR 1,400/MT.

What is building pressure on Pig iron prices?

Imbalance between demand and supply has led to price cut in domestic market. Sharp fall in exports have forced the manufacturers to dump the material in domestic market at lower prices.

Trade wise

1. Raipur manufacturers are offering Pig iron at INR 19,000-19,100/MT, ex-works.
2. Offers in Durgapur dropped to INR 17,500/MT ex-works.
3. Bokaro based manufacturer has also reduced prices by INR 200-300/MT to INR 17,700/MT, ex-works.
4. MMTC invited expression of interest for sale of Pig iron upto 2,000 MT per month. The contract period starts from Jul’15-Mar’16.
5. RINL is yet to announce fresh offers for Pig iron for Jun’15 deliveries. Its previous offers were at INR 19,000/MT, ex-Vizag.

Indian Steel Grade Pig Iron Prices as on 1 Jun’15

Source: SteelMint Research