Pig iron prices in India declined by INR 200-300/MT on its increased availability in domestic merchant market. Production rise by 2.5% Y-o-Y, in Apr & May’15
Pig iron market in India witnessed a slight fall in price of INR 200-300/MT W-o-W. Major market like Durgapur is offering Pig iron at INR 17,000-17,300/MT, Raigarh at INR 18,000/MT and Raipur at INR 18,900/MT ex-plants.
While prices in Odisha based pig iron market like Rourkela, Cuttack and Jharsugda were in the range of INR 17,000-17,500/MT, ex-plants. Whereas domestic offers of SAIL-RSP for 75,000 MT got expired on 20 Jun’15 and the company has yet not declared any fresh offers. Its previous offer was at INR 17,500/MT, ex-plant.
Sources mentioned RSP’s previous offering of 75,000 MT is not completely sold as yet. Perhaps, company may take sometime to announce any fresh offer for sale.
Increasing Production Vs Decreasing Export
According to JPC report, Pig iron production in India went up by 2.5% Y-o-Y, in Apr- May’15 to 1.6 MnT, whereas, export fell by 24% Y-o-Y in Apr-May’15. India exported 97,000 MT Pig iron in Apr-May’15, while around 127,800 MT in Apr-May’14. This increasing gap in demand & supply has forced manufacturers to dump the exported material in the domestic market at a cheaper rates.
NINL cut’s INR 100/MT in Domestic Offers’
NINL offers N1 grade Pig iron at INR 17,400/MT and N2 grade at INR 17,600/MT, ex-Cuttack till 10 Jul’15. It previously offered N1 grade at INR 17,500/MT and N2 grade at INR 17,700/MT respectively, which got expired on 23 Jun’15. Company has recently closed an export deal for 40,000 MT at USD 264/MT FoB Paradip port.
The outlook suggest that increased production, improving mining activity and upcoming monsoon, might result in further fall in domestic Pig iron prices.
Trade Wise
- Vizag Pig iron export tender for 30,000 MT has expired on 25 Jun’15
- MMTC recently settled its export tender for 40,000 MT Pig iron at USD 264/MT FoB Paradip port
- A vessel of 30,000 MT Pig iron is exported to Thailand from Mormogaon on 25 Jun’15
- Pulled iron at Tata Steel was sold at INR 14,800-15,000/MT, ex-Jamshedpur
Domestic Pig Iron Prices as on 25 Jun’15
| Particulars | Prices in INR/MT | W-o-W Change |
| Ex-Raigarh | 18,000 | – 200 |
| Ex-Raipur | 18,900 | 0 |
| Ex-Cuttack(NINL) | 17,400-600 | -100 |
| Ex-Durgapur | 17,000-200 | – 100 |
| Ex-Jharsuguda | 17,600 | – 400 |
| Ex-Rourkela | 17,500 | 0 |
| Ex-Bokaro | 17,000-200 | -200 |
| Ex-Giridih | 17,700 | 0 |
| Ex-Hyderabad | 19,500 | 0 |
| Ex-Vizag | 18,700 | 0 |
| Ludhiana, delivered (including ED) | 23,000 | 0 |
Source: SteelMint Research
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