Indian Pig Iron Prices Continue to Fall

Pig iron prices at one of the most active markets, Durgapur, fell sharply by INR 1,200/MT M-o-M.

Indian Pig iron prices witnessed a marginal fall of around INR 100-300/MT W-o-W. Market remained dull, with continued sluggish demand and cash-crunch.

Pig iron is currently offered in the range of INR 17,300-19,100/MT, ex-works. Companies are allowing further discounts of INR 200-400/MT on bulk purchases of the material.

Marginal fall in sponge & billet prices last week, have compelled Pig iron manufacturers to reduce their offers accordingly. Currently, sponge iron in major markets is offered at INR 15,000-17,000/MT, ex-works whereas billet is offered at INR 24,800-27,300/MT, ex-works.

On the other hand cheaper offers for Pig iron from Odisha based manufacturers is calling attention of manufacturers based in west India. Market participants shared that bulk quantity of Pig iron from Odisha (at INR 17,100-17,500/MT, ex-plant) is supplied to Nagpur, Jalna and other parts of Maharashtra at cheaper rates. Freight by road, from Odisha to Maharashtra, would be around INR 2,000-2,500/MT.

Trade wise

1. 1,000 MT Pig iron sold at INR 18,000/MT, ex-works Raigarh
2. SAIL-IISCO sold 2 rakes of MoG grade Pig iron to Ludhiana at INR 17,050/MT, ex-works Burnpur
3. Tata steel sold pooled iron at INR 15,800/MT, ex-Jamshedpur
4. MMTC’s export tender for 40,000 MT Pig iron will close on 16 June’15
5. MMTC’s expression of interest for sale of Pig iron in domestic market will expire on 16 June’15
6. RINL’s tender for export of 30,000 MT Pig iron will close on 25 June’15

Steel Grade Pig Iron Offers as on 09 June’15

Source: SteelMint Research