Pig iron manufacturers in Central & East regions have further raise prices by INR 100-500/MT. Price surge is in line with higher billet prices and improved demand amid limited sellers for the material.
Key suppliers in East India mentioned, trades are quite good on increased prices. However, traders in Central region reported, buyers are skeptical about purchase at fresh increase prices.
Current offers are assesed – at INR 22,000/MT ex-Durgapur & Giridih (East India), INR 22,500-22,800/MT ex-Raipur (Central India) & INR 22,500/MT FOR Hyderabd (South India).
A official from the Integrated plant in Jharkhand reported, around 1,000 MT pig iron have been sold out to Durgapur at INR 22,300-22,500/MT (FOR) in the week. He added, purchase interest is strong as smelters are planing to raise production which had temporarily halted operations during demonetization of Indian currency.
In outlook, the manufacturers in East India & traders in Central region mentioned that prices are likely to be remain range bound or gain momentum as demand is strong and there are possibilities of increase in Ingot/billet production.
Trade Updates:
1. According to the officials in Jindal Steel, production is limited for pig iron and have primarily focused on making other semis & long products due to better margins. The plant’s last offer for steel grade material was at INR 22,000/MT ex-Raigarh.
2. According to traders in Raipur, Jayaswal Neco Industries Ltd is offering material at INR 22,800/MT on limited quantity. Local trades in Raipur were assesed at INR 22,500-22,700/MT.
3. Neo Metaliks in Durgapur is offering Steel grade at INR 22,000/MT & Foundry at INR 25,000/MT; prices surge by INR 500/MT compared to last week prices.
5. Ludhiana based traders reported slow rake movement which had created shortage for the material. Current offers for Steel grade at INR 27,500-28,000/MT & foundry at INR 31,000-31,500/MT FOR.
6. Vizag Steel (RINL) hiked prices in the current week by INR 500/MT to INR 22,400/MT (USD 330) ex-Vizag.
7. RSP tender held during last week (23rd Dec’16) received good response at the price of INR 20,600/MT. The quantity alloted was at 8,000 MT and almost all the quantity has been sold out, sources mentioned.
8. Neelachal Ispat (NINL) have increased price in the last week by INR 500/MT to INR 21,500/MT (USD 315) ex-Cuttack.
9. MMTC on behalf of NINL concluded 30,000 MT export tender at approx USD 291-292/MT FOB, according to the sources.
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