Prices across the globe fell by USD 20/MT in a week’s time.
Indian Pig iron market may experience price pressure in near future. A sharp fall in scrap offers, along with cheaper Chinese billet offered in the market, have forced global Pig iron prices to fall by USD 20/MT i.e from USD 255/MT to USD 235/MT, FoB Black Sea in a week’s time.
Electric arc furnaces at CIS nations are preferring scrap over Pig iron, owing to reducing price gap between both the products. In fact, scrap offers at Turkey were found lower to Pig iron in the nations. Current offers for Pig iron at CIS nations are at USD 235-240/MT FoB Black Sea and imported scrap are at USD 220-225/MT, CFR Turkey.
India’s last Pig iron export tender received bid at USD 257/MT, and was unsold. Prior to that an export by MMTC was settled at USD 264/MT FoB India.
Looking at the sharp fall in global Pig iron prices, Indian participants anticipate poor response in the upcoming export tender.
Domestic Pig Iron Market
Pig iron prices in major markets like Bengal and Chattisgarh remained unaffected this week, though participants have high expectations of a price cut in these markets after SAIL-RSP slashed price by INR 500/MT.
SAIL-RSP recently offered 65,000 MT Pig iron in the domestic market at INR 16,900/MT with discount of INR 400/MT. Markets close to Rourkela have started witnessing price corrections. Plants at Cuttack, Bokaro are offering Pig iron at around INR 16,800/MT, ex-works.
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