Pig iron prices in Indian market continues to fall since May’16 on increased supply and poor trade activities.
In a week, offers fell by upto INR 1,000/MT (USD 15) and during a month by upto INR 2,200/MT (USD 33/MT).
Prices have dropped after Neelachal Ispat Nigam Ltd (NINL) has cut its prices. NINL is the largest supplier for steel grade Pig iron in domestic market . Last week the company has reduced prices by INR 900/MT (USD 15/MT).
Steel makers based in central & east markets mentioned “NINL Pig iron is available at an cheaper price by INR 300-500/MT than the local manufacturer’s offers. Offers likely to come down further by secondary manufacturers in coming weeks”
Trade Hightlights
1. Raipur based Jayaswal Neco Industries has reduced offers by around INR 1,000/MT to INR 19,500/MT ex-plant, Raipur.
2. Jindal Steel reduced offers to INR 19,300/MT. Last offers in the end of May’16 assesed at INR 20,000/MT ex-plant, Raigarh.
3. IISCO (SAIL’S unit) opens prices for Jun’ 16 deliveries, steel grade offers herd at INR 17,500/MT. In the last month same grade offers was at INR 18,100-18,200/MT
4. As per Sources Tata steel’ Kalinganar plant is offering ferroshots Pig iron at INR 18,000/MT (discount extra on bulk purchase) and Pooled Iron at INR 14,800/MT ex-plant.
5. Durgapur based merchant Pig iron sellers namely Neo Metaliks, Kajaria Iron and Jai Balaji Industries offers are at around INR 17,400-17,600/MT. As per trade sources, Kajaria Steel herd to sold foundry grade material at INR 22,000/MT.
6. Ludhiana based traders reported, supply improved for both grade Pig iron specially from east India. Steel grade available of Kajaria Iron & Tata Steel at INR 23,200/MT and Foundry grade of Sesa goa is available at INR 26,300-26,500/MT (Inluding ED, CST & Freight).
7. As per trade sources, Electro Steel which is moslty trading material to Durgapur, has reduced offers by INR 500/MT to INR 17,500/MT (landed to Durgapur, Including Freight & CST)
8. South based Gerdau Steel & Sathavahana Ispat is offering Pig iron at INR 19,500/MT FoR Hyderabad (Including CST & Frieght). Similar offers is being herd from Sesa goa on same terms.
Steel grade Pig iron Prices as on 07 Jun’16
| Particular | Currency | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | INR/MT | 17,800 | 700 | 1,400 | NA |
| Ex-Cuttack(NINL) | INR/MT | 17,900 | 600 | 1,300 | 100 |
| Ex-Durgapur | INR/MT | 17,400 | 367 | 1,450 | 1,600 |
| Ex-Giridih | INR/MT | 18,000 | 100 | 500 | NA |
| Ex-Hyderabad | INR/MT | 19,500 | 1,067 | 2,200 | 1,500 |
| Ex-Ludhiana | INR/MT | 23,200 | 400 | 1,000 | 700 |
| Ex-Raigarh | INR/MT | 19,300 | 700 | 1,150 | 500 |
| Ex-Raipur | INR/MT | 19,500 | 1,067 | 1,600 | 750 |
| Ex-Rourkela | INR/MT | 17,800 | 600 | 2,200 | NA |
| Ex-Vizag | INR/MT | 19,500 | NA | NA | 2,700 |
| FOB Brazil | USD/MT | 270 | 0 | 5 | 75 |
| FOB India | USD/MT | 255 | 11.5 | 25 | 60 |
| FOB Russia | USD/MT | 260 | 6.5 | 30 | 55 |
Basic grade Pig iron prices
Source: SteelMint Research
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