Indian Pig Iron Offers Raise Further

Indian Pig iron offers have raised further by upto INR 700/MT. Market participants mentioned short supply of material.

Recently NINL, the country’s largest Pig iron maker, has increased its offers by INR 600/MT for rest of Apr’16 deliveries. This led to price rise of INR 300-700/MT in central and east India. However in south India, offers remain unchanged.

Short supply due to increased captive consumption by big players and continuous rise in global billet & scrap offers are supporting domestic Pig iron offers.

Highlights

1. Raipur based Jayaswal Neco Industries increased offers by INR 400/MT to INR 20,600/MT ex-plant.

2. Buyers from Durgapur reported short supply of Pig iron by manufacturers like Neo Steel, Jai Balaji and Kajaria Steel as they have increased offers from INR 18,700/MT to INR 19,200-19,300/MT.

3. North (Ludhiana) based trader mentioned that around 3 rakes of Pig iron were booked last week to IISCO. But, only a single rake was dispatched till date.

4. Last offers of Raigarh based Jindal Steel were assessed at around INR 20,200-20,300/MT. Now, the plant has opened its sales with a price rise of INR 700/MT to INR 20,900-21,000/MT ex-plant. However, an another manufacturer in this market, MSP was heard to close its sales at INR 20,300/MT last week.

5. Pig iron shortage for both grades (steel & foundry) is continued in Ludhiana, which has resulted in price rise of INR 300-700/MT for both grades.

6. At present in West Bengal, there are no sellers for foundry grade Pig iron, reported traders based in the region. Last offers for foundry grade were seen at around INR 21,500/MT.

Steel grade Pig iron offers as on 25 Apr’16

Basic prices in INR/MT
Source: SteelMint Research