Indian Pig iron offers have been almost firm since the beginning of current month on account of pick up in export, which eases selling pressure and impacts supply in domestic market.
Large manufacturers’ offers for steel grade material are assessed at around INR 15,500/MT East Coast and INR 16,000/MT West Coast. Recently, few export deals concluded at approx USD 240/MT FoB, which is equivalent to INR 16,000/MT. Thus, the manufacturers’ prime focus is to sell material in international market and to get bulk bookings.
According to custom data, Indian Pig iron export jumped to 23,493 MT during Jul’16 against a mere export of 1,486 MT in Jun’16.
It is to be noted that Bangladesh import query has picked up due to expensive international scrap and import duty on billets. Besides, Bangladesh has also increased production of billet in local market.
Sources reported to SteelMint that NINL and Vedanta Resources, the key suppliers of Pig iron in global & domestic markets, are receiving better response at current offers. It seems that manufacturers will keep offers unaltered for the rest of the month.
Trade highlights
1. Jindal Steel has kept its offers firm at INR 16,800/MT ex-Raigarh.
2. Jayaswal Neco Industries Ltd is heard to offer material at around INR 17,200/MT ex-Raipur.
3. Durgapur based Jai Balaji Steel, Neo Metaliks and Kajaria Iron are offering Pig iron in the range of INR 16,300-16,500/MT; offers similar as in the last week.
4. Ludhiana based traders mentioned that around 6-8 rakes of steel grade Pig iron have been booked from NINL at current offer of INR 15,500/MT. Material is likely to get dispatched soon.
5. Tata Steel’s pooled iron offers are evaluated at INR 14,100/MT and ferroshots at INR 14,800-14,900/MT ex-plant, Odisha.
6. Durgapur Steel Plant (DSP) is offering material at INR 15,650/MT ex-Durgapur.
7. Tata Metaliks has reduced its offers for foundry grade at INR 22,200/MT ex-plant, Odisha.
8. NINL has kept its offers unchanged at INR 16,500/MT for N2 (foundry) grade material.
9. Vedanta Resources and South based Santwana Ispat have kept their offers unchanged at INR 18,300-18,500/MT, FoR Hyderabad for steel grade material (including freight & CST/VAT and excluding 12.5% ED).
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