Indian pig iron market registered price movement of INR 300-600/MT (USD 5-9) W-o-W. The market resumed supply by few manufacturers and there is dip in prices in Durgapur, while in Raipur it surge in line with limited supply amid high cost from outside State material.
Current offers for steel grade pig iron are – at INR 22,800-23,000/MT (-500) in Durgpur, INR 24,100-24,500/MT (+600) ex-Raipur, INR 23,000/MT (0) ex-Giridih, INR 23,500/MT (+300) FOR Hyderabad & INR 28,000/MT (-350) FOR Ludhiana. Changes mentioned are on weekly average basis.
KIC (Kajaria Iron Company) & Jai Balaji Steels in Durgapur have halted operations since mid of Dec’16. However, according to the trade participants, now the plants have resumed operations which resulted in fall in prices.
In the Raipur traders have reported that Odisha pig iron’s landed cost to Raipur at INR 24,000-24,200/MT for that Raipur based Jayaswal Neco Industries have hike their prices by INR 500-700/MT to INR 24,500-24,700/MT ex-plant, in a week duration.
Although, in Ludhiana offers tumble to INR 27,500-28,000/MT from earlier at INR 28,000-28,500/MT FOR. Traders added that supply from outside States is normalized while demand is continue to be sluggish.
In Hyderabad (South India), smelters added no fresh offers by Gerdau Steels & Vedanta Sterlite. According to them the last trade for steel grade material was at INR 23,500/MT FOR. Now the respected units are planning to quote fresh prices with hike of INR 1,000/MT.
In outlook it seems that, if the demand of Ingot/billet remains supported, domestic pig iron manufacturer may take advantage on the said commodities.
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