Indian Scrap Demand Improves over High Pig Iron Offers

Central & east Indian manufacturers have switched to melting scrap instead of Pig iron.

Expensive Pig iron has widened the price gap between Pig iron and domestic HMS scrap. Buyers in most of the markets are heard to increase their scrap consumption as per their melting proportion. Price gap has widened from earlier INR 1,000-1,500/MT to INR 2,500-5,000/MT.

Market comments:

1. Integrated plants owners in east India, who were majorly procuring Pig iron from open market, have reported to SteelMint that they have increased scrap purchases instead of expensive Pig iron. For instance, melting scrap (HMS 80:20) offers in Durgapur (east India) are assessed at INR 18,000-18,500/MT; while the Pig iron is available at INR 20,500-21,000/MT on FoR basis.

2. Similarly, small sized induction operators in Raipur reported that CPC (Calcined Petroleum Coke) is most favorable to them with scrap.

3. In Hyderabad, manufacturers mentioned that previous booked Pig iron at a price of INR 20,000-21,000/MT are in pipeline. However, they are not booking material at current increased rates. Turning boring scrap & cast iron are the suitable products for them in the near-term.

4. Maharashtra based manufacturers reported that they have been halted procuring of Pig iron since couple of months and are totally dependent on cast iron and HMS scrap.

Indian Scrap & Pig Iron Prices

*Basic prices, #Including ED @ 12.5% & freght (FoR)
Source: SteelMint Research