Pig iron manufacturers in Central & East regions have increased prices in line with rising billet prices and short supply of the material. However, trades are yet to take place at fresh prices.
Renowned manufacturer in Raipur (Central India) raised prices by approx INR 500/MT to INR 22,000-22,250/MT ex-plant. Similarly, in Durgapur (East India) it escalate by INR 200/MT to INR 21,700/MT.
Manufacturers in East (West Bengal & Jharkhand) region reported improved sales even after the rise in billet prices which was quite dull in the previous weeks.
A Jharkhand based manufacturer who mostly sell material across north-east region quoted “Inductions are currently running at less utilization capacity which has reduced consumption for the material. So, there is less scope for further price surge in near term amid high billet prices”.
While analyzing global pig iron price movement it remained stable owing to limited buying activity amid seasonal holidays. In addition, uncertainty in raw material prices also made buyers cautious.
Trade Updates:
1. Jindal Steel offered at INR 22,000/MT ex-plant, Raigarh. The plant’s operations are halted for pig iron and have primarily focused on making other semis & long products due to better margins, a senior person from the company informed.
2. In Raipur, Jayaswal Neco Industries Ltd has increased prices by around INR 500/MT to INR 22,250/MT, an official reported. CPC alternative to pig iron is traded at FOR Raipur INR 25,000/MT (Basic, ED & VAT Extra)
3. Neo Metaliks in Durgapur is offering Steel grade at INR 21,700/MT & Foundry at INR 24,500/MT. Jai balaji Steels in same place offered steel grade material at INR 21,400-21,500/MT, source reported.
5. Ludhiana based traders reported that the material is mostly purchased from Sesa Sterlite and Neelachal Ispat for both Steel & Foundry grade. Current offers for Steel grade at INR 26,500-27,000/MT & foundry at INR 30,000-30,500/MT FOR.
6. Tata Metaliks offer remained unaltered for foundry grade at INR 25,500/MT ex-plant, Kharagpur.
7. NINL’s fresh prices are yet to be opened for domestic buyers. The company’s last offer for Steel (N1) grade at INR 21,000/MT (excluding discounts upto INR 400/MT) expired on 20th Dec. In addition the company is yet to conclude its one of the Pig iron export tender for 30,000 MT for which the bid was received at USD 284/MT, FOB East Coast, higher by USD 4/MT from its last tender.
8. Vizag Steel has recently cancelled its export tender for 20,000 MT Pig iron on not securing an expected high price bid. The company expected a bid around USD 300/MT, FOB East Coast but received bids at USD 281.5/MT, FoB East Coast. According to sources the company now plans to sell material in domestic market due to high price realization.
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