Indian merchant Pig iron manufacturers have raised steel grade Pig iron prices following Neelachal Ispat’s recent price hike and limited availability in market.
Secondary Pig iron manufacturers in India have increased offers by INR 200-1,000/MT in a week’s time despite fall in ingot/billet prices. Reason learned for the rise is recent increase in NINL’s Pig iron offers by upto INR 700-900/MT, ex-plant.
Moreover, production cut and limited supply by major manufacturers in central and eastern India for merchant sale have provided room for price rise.
However, participants anticipate that increased prices may not last for long in this bearish market. Fall in semi finish prices (ingot/billet) and contracting conversion margins between Pig iron and billet will not let increased Pig iron prices sustain for long term.
Steel Grade Pig iron Prices as on 28 Jan’16
| Particular | Prices in INR/MT | W-o-W Change |
| Ex-Cuttack (NINL) | 16,800 | 700 |
| Ex-Durgapur | 16,000-16,500 | 300 |
| Ex-Giridih | 16,000 | 0 |
| Ex-Hyderabad | 16,800 | 0 |
| Ex-Jharsuguda | 16,700 | 800 |
| FOR Ludhiana (incld ED) | 20,200 | 0 |
| Ex-Raigarh | 18,000-18,100 | 1,000 |
| Ex-Raipur | 18,000-18,100 | 400 |
| Ex-Rourkela | 16,700 | 1,200 |
| Ex-Vizag | 16,200 | 0 |
Source: SteelMint Research
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