Indian Pig Iron Offers Likely to Go Up Further

Domestic Pig iron prices are expected to increase in Apr’16 month, after two consecutive hike in Mar’16 by upto INR 1,000/MT.

SteelMint sources reported that Pig iron offers by large manufacturers based in Odisha and Chhattisgarh are likely to surge further amid supply shortage and increase in self consumption.

NINL is yet to open price circular for this month; the last price circular had expired on 21 Mar’16. If sources to be believed, the new price circular is likely to open with a price rise of INR 300-500/MT within 2-3 days.

Central India, Raipur based a large trader reported that Jayaswal Neco Industries, having Pig iron capacity of 0.7 MnT pa, has recently increased its self consumption of Pig iron due to increase in furnace steel capacity. This has cut Pig iron supply locally to more than 120+ furnace located in the city. The plant offered steel grade Pig iron at INR 20,250/MT ex-plant. Raipur also receives material from Raigarh and Odisha based Pig iron manufacturers.

Many Odisha based small Pig iron manufacturers reduced their production during Feb-Mar’16. As per sources, stock level is also nil in pithead. The state mostly supplies Pig iron to north, west, central and south markets.

Increase in imported scrap offers to India by USD 10-15/MT for April deliveries has also picked up demand for Pig iron in domestic market.

Steel grade Pig iron offers as on week 14 (28 Mar’16-3 Apr’16)

Prices in INR/MT
Source: SteelMint Research