Indian Pig iron exporters, who have been quiet for sometimes, are expected to come back amid strong global demand and high prices. Pig iron prices in global market have gone up by USD 70-80/MT M-o-M and USD 90/MT from low in Jan’16.
Global Pig iron prices are moving up in-line with scrap prices, which is a result of expensive billet from Chinese suppliers. Scrap prices have gone up by USD 50-60/MT in last one month.
40,000 MT Indian Pig iron export tender expiring on 17 May’16
Indian state trading house, MMTC on behalf of NINL (Neelachal Ispat Nigam Ltd) had floated an export tender of 40,000 MT steel grade Pig iron, which is going to expire on 17 May’16. Tender is likely to get good response, looking at rising offers from Russian and Brazilian Pig iron exporters.
Participants are expecting bids to be in the range of USD 270-280/MT, FoB India.
Last tender was settled by Switzerland based trading company for a parcel of 31,500 MT at USD 190/MT in the month of Dec’15.
Indian domestic prices remain high; demand remains low
Indian domestic Pig iron prices continue to remain strong on account of low inventories at mills and expensive Met coke and coking coal prices. NINL, India’s largest merchant manufacturer, had raised prices by INR 600/MT last week. Other private manufacturers have also raised their prices, however, buyers remain hesitant.
Current offers for steel grade Pig iron are assessed at INR 19,400-19,800/MT (USD 290-300/MT on ex-works, Odisha). West Bengal based manufacturers are offering material at INR 19,600/MT (USD 295/MT). Offers in Chhattisgarh are evaluated at INR 20,800/MT (USD 310/MT) ex-Raipur and INR 21,000/MT (USD 315/MT) ex-Raigarh.
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