Pig iron manufacturers in domestic market have raised their offers by INR 1,500-3,000/MT in Sep’16 M-o-M. During the same period, billet prices also increased by upto INR 2,000/MT.
Sharp increase in coking coal prices amid logistic issues on iron ore led to rapid rise in Indian Pig iron prices. In Sep’16, coking coal offers were evaluated at USD 185-215/MT FoB Australia, which were USD 105-135/MT in Aug’16. Offers have increased by around USD 80/MT (INR 5,400/MT) M-o-M.
On monthly average basis, Pig iron offers in Sep’16 were recorded in the range of INR 17,500-20,200/MT (USD 260-300). While during Aug’16, it was traded at INR 15,700-18,400/MT (USD 235-275/MT) ex-works. During Sep’16, the highest price rise of INR 2,700-3,000/MT (16-18%) was seen in Raipur, Durgapur and Giridih, followed by Rourkela, Cuttack and Hyderabad (INR 1,800-2,300/MT).
Post significant price rise in Pig iron, trade volume had improved due to increase in purchases by traders, who play a key role in the Pig iron market.
Highlights of the month
1. Tata Steel’s bid pricefor its Pooled iron tender surged to INR 19,000-19,100/MT, which was INR 17,000-17,500/MT ex-plant in Aug’16.
2. Tata’s ferroshots offers increased by INR 2,500/MT M-o-M to INR 20,500/MT in Sep’16.
3. RSP’s tender received highest bid at INR 20,500-20,900/MT. However in the month of Aug’16, the highest bid was recorded at around INR 18,000/MT.
4. Vedanta Resource’s increased its steel grade offers at INR 20,500/MT, which was around INR 17,000/MT during Aug’16, according to traders.
5. NINL, considered as a major supplier of steel grade Pig iron in open market, has surged their offers by INR 4,000/MT in Sep’16.
Pig Iron Monthly Average Prices for Steel Grade
| Month | Durgapur | M-o-M | Raipur | M-o-M | Cuttack | M-o-M | Hyderabad | M-o-M |
| Jan’16 | 16,200 | + 900 | 17,500 | + 1,250 | 16,200 | + 950 | 16,650 | + 150 |
| Feb’16 | 17,150 | + 950 | 18,600 | + 1,100 | 16,750 | + 15,100 | 17,250 | + 600 |
| Mar’16 | 18,550 | + 1,400 | 19,700 | + 1,100 | 17,700 | + 950 | 18,000 | + 750 |
| Apr’16 | 18,800 | + 250 | 20,400 | + 700 | 18,900 | + 1,200 | 19,050 | + 1,050 |
| May’16 | 18,700 | – 100 | 20,950 | + 550 | 19,150 | + 250 | 21,350 | + 2,300 |
| Jun’16 | 17,450 | – 1,250 | 19,600 | – 1,350 | 18,050 | – 1,100 | 19,600 | -1,750 |
| Jul’16 | 16,800 | – 650 | 17,850 | – 1,750 | 16,850 | – 1,200 | 18,250 | -1,350 |
| Aug’16 | 16,600 | – 200 | 17,250 | – 600 | 16,100 | – 750 | 18,420 | 170 |
| Sep’16 | 19,600 | + 3,000 | 20,150 | + 2,900 | 18,650 | + 2,550 | 20,100 | + 1,680 |
Basic prices in INR/MT
Sources: SteelMint Research
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