Indian Pig Iron Offers Hit 7-Month Low

Pig iron offers in central and east regions of India recorded a 7-month low levels in the current month. The same offers were seen in the beginning of Jan’16.

Current offers are assessed at INR 17,200/MT ex-Raipur, INR 16,200/MT ex-Durgapur and INR 15,700-15,800/MT ex-Rourkela for steel grade material. The similar offers were assessed during 1st week of Jan’16 at INR 17,300-17,400/MT ex-Raipur, INR 16,200-16,300/MT ex-Durgapur and INR 14,800-14,900/MT ex-Rourkela.

Since the starting of May’16,  Pig iron offers have been falling consistently on the backdrop of oversupply in the domestic market and limited export trades by large manufacturers. Moreover, offers during the current month have touched to 7-month low levels in Raipur (central), Durgapur and Rourkela (east India).

Looking at current circumstances, industry sources are anticipating that prices may find support in near term as recent resumption of export will impact domestic supply. Moreover, increasing raw material (coal) prices will support manufacturers to keep their offers strong.

Market updates

1. Secondary manufacturers are in wait and watch mode for NINL fresh offers. The last price circular of INR 15,900/MT (excluding discount) has expired yesterday. Traders, who deals with NINL reported that the company will not open fresh offers immediately as sufficient quantity was sold in last deal.
2. Jayaswal Neco Industries in Raipur trading material at INR 17,200/MT ex-plant. As per traders, the plant is offering limited quantity in the market i.e approx 15,000-20,000 MT monthly.
3. Jai Balaji Industries in Durgapur has kept its offers unaltered to INR 16,300/MT. While, the rest of sellers namely KIC and Neo Metaliks are offering material in the range of INR 16,300-16,500/MT.
4. Tata Steel’s ferro-shots Pig iron offers are assessed at around INR 15,700/MT ex-Kalinganagar, Odisha plant.
5. As per billet manufacturers in Hyderabad, offers by Sesa Goa & Santwana Ispat are assessed at INR 18,500/MT, FoR (including freight; only, VAT/CST & ED excluded).