Indian pig iron exports have gained momentum in July 2016 due to weak demand and falling prices in domestic market. According to participants, over 50,000 MT pig iron export deals have been concluded this month.
In first week of July, SAIL had concluded 15,000-20,000 MT pig iron at a price of USD 230-235/MT FOB Haldia Port. Followed by MMTC’s tender on behalf of NINL (Neelachal Ispat) for 15,000/MT at an average price of USD 240/MT FOB Paradip port. Recently, Vedanta Resources have concluded an export deal of 20,000 MT at a price of around USD 240-45/MT FOB Mormugao port. Sources mention that most these shipments will go to Bangladesh.
Indian Pig Iron Export Since Jan 2016
| Month | Quantity |
| Jan’16 | 31,500 |
| Feb’16 | Nil |
| Mar’16 | Nil |
| Apr’16 | Nil |
| May’16 | 3,200 |
| Jun’16 | Nil |
| Total | 34,700 |
Provisional Data
Source: Custom, SteelMint Research
Domestic Prices Fall by INR 3,000-4,000/MT in last 3 months
Indian domestic pig iron prices during the Q1 of FY 16 have slumped by upto INR 4,000/MT (USD 60). Sluggish demand & increased supply by major players are the major reasons behind falling prices. Steel grade pig iron is trading at INR 16,500-16,600/MT (Ex-Durgapur) , which was traded at INR 19,500/MT in the month of May 2016.
Indian Pig Iron Prices may not Fall Significantly
With increased demand from export market, it is expected that Indian pig iron manufacturers may not want to reduce their offers significantly. At an average export price of USD 240/MT FOB (15,800/MT), pig iron manufacturers are managing to fetch better realizations than domestic market. Neelachal Ispat’s pig iron prices, which were due to open this week, is likely to open after a week.
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