Indian pig iron manufacturers have significantly raised their domestic prices in Oct’16. During the period offer surged by INR 1,200-2,800/MT (US$ 18-42) in Central, East & South India.
Sharp increase in coking coal prices led to surge Indian Pig iron prices. In Oct’16, coking coal offers were crossed the levels at USD 250/MT FoB Australia, which were at USD 165-215/MT in Sep’16; offers have increased approximately by USD 50-55/MT (INR 3,500/MT) M-o-M.
During the month, renowned manufacturers in central & east India were reported that buyers had minimized purchases for pig iron due to high offers. However, the manufacturers were reluctant to hike their prices owing to rise in input cost on surge of coal & iron ore prices.
On an average monthly basis, Pig iron offers in Oct’16 were recorded in the range of INR 20,800-22,800/MT (USD 310-340). While Sep’16, it was traded at 17,500-20,200/MT (USD 260-300) ex-works. During Oct’16, the highest price rise of INR 2,500- 2,700/MT (13-20%) was seen in Cuttack, Rourkela & Hyderabad, followed by Raipur, Durgapur & Giridih by INR 1,200-1,800/MT (6-10%).
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 | 16,150 | + 950 | 16,650 | + 150 |
| Feb’16 | 17,150 | + 950 | 18,600 | + 1,100 | 16,750 | + 500 | 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 | 18,450 | + 200 |
| Sep’16 | 19,600 | + 3,000 | 20,200 | + 2,950 | 18,650 | + 2,550 | 20,100 | + 1,650 |
| Oct’16 | 20,800 | + 1,200 | 22,050 | + 1,850 | 21,150 | + 2,500 | 22,800 | + 2,700 |
Basic prices in INR/MT
Sources: SteelMint Research
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