Today, steel grade Pig iron offers in Durgapur rose by around INR 500/MT. As per traders, the manufacturers have increased offers due to rising coal prices (input cost).
In Durgapur, last offers were heard at INR 16,400-16,500/MT, which now moved up to INR 17,000/MT.
Coking coal offers, which were USD 95-106/MT, CFR India during the month of May-Jun’16, now increased to USD 115-119/MT for Aug’16 and Sept’16 shipments (increased by about USD 15/MT).
As per market participants, increasing Pig iron prices are not accepted by buyers as billet prices are declining and manufacturers poising over rising input cost amid weak trade activities. Billet prices in Durgapur are prevailing at INR 19,500/MT; down by INR 400/MT W-o-W.
In Durgapur, Kajaria Iron, Neo Metaliks and Jail Balaji Steels are the major producers and suppliers of steel grade Pig iron. Sources, who trades with companies, reported that the plants are also selling material to north India due to shortage of scrap in the market. All the manufacturers are running units at 100% capacity, sources mentioned.
Others are in wait & watch mode
Rest all manufacturers based in central, east & south regions are in wait and watch mode and waiting for NINL fresh price circullar.
It is anticipated that NINL may also increase offers as the manufacturer has concluded bulk deals in the last offers for both domestic & global market. Also, rising input cost may push manufacturer to keep offers strong.
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