Global Pig iron prices fell by 50% in Jan-Sept’15; resistance was seen in buying.
Vizag steel (RINL), a state owned and one of the largest Indian Pig iron manufacturer, has failed to receive response in global export tender for 30,000 MT Pig iron closed on 12 Oct’15. However, participants mention that company might have closed deal at USD 205-210/MT, FoB India.
Last Pig iron tender by MMTC also failed to receive response, which closed on 21 Sept’15.
Pig iron exports from India have almost stalled owing to lower offers in global market. Last export deal from India was concluded in Jun’15 for 42,000 MT at USD 264/MT, FoB India. Total Pig iron exports from India during Jan-Sept’15 were recorded at 371,500 MT.
Current global offers at Black Sea has further slipped to USD 180-185/MT, FoB this week with a fall of around USD 15/MT W-o-W. Moreover, it was assessed that Pig iron prices fell by upto USD 160/MT within last 9 months (Jan-Sept’15) i.e from USD 340/MT to USD 180/MT, FoB Black Sea.
Domestic Pig iron market
Although, Indian Pig iron prices have started to fall, RINL have greater opportunities to sell Pig iron in domestic market. Currently, the company is offering at INR 17,300/MT, ex-Vizag with a discount of upto INR 300/MT.
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