Indian pig iron producers have further raise their prices in Jan’17 over limited supply where as earlier reason of rise in raw material coking coal prices remain offset.
On monthly average basis Steel grade pig iron prices gain by INR 1,200-2,500/MT (USD 17-36) in Jan’17. Continuation of Dec’16 M-o-M, it was uptick by INR 500-1,000/MT (USD 7-15).
Analyzing price movements of Coking coal which is the key raw material to make pig iron have reported sharp fall by USD 50/MT to USD 180-183/MT CFR India, which was above the level of USD 230/MT during Dec’16 that was the major reason cited by manufacturer to increase in prices.
During the last month, Jan’17 demand was reported good by the Indian domestic & export buyers. Limited supply reported by few plants in East India that were temporarily shut down. JPC reported crude steel production increase in month of Dec’16 by 9% to 8.4 MnT compared to Nov’16 at 7.7 MnT that may continue for Jan’17 as well.
On monthly average basis, Pig iron offers during Jan’17 were recorded in the range of INR 22,000-24,000/MT (USD 322-352). While, in Dec’16, it was traded at INR 20,600-21,800/MT (USD 302-320) ex-works.
Highlights of the month
1. In Jan’16, NINL hiked prices by INR 1,500/MT in both Steel & Foundry grade material; post hike, offers were assessed at INR 23,000/MT for Steel grade (N1) & INR 23,500/MT for Foundry (N2). During the month, the plant has also successfully concluded a tender of around 31,500 MT steel grade material and the deal price was at approx USD 292/MT FOB East Coast, India.
2. RSP’s has not scheduled any tender for pig iron during the month of Jan’17.
3. In the mid of Jan’17, Tata Steel has opened fresh prices for Ferro shots at INR 22,000/MT & Pooled iron at INR 21,000/MT approximately. The offers price has increased by INR 1,000/MT compared to price range in Dec’16.
4. South India based, Vizag Steel (RINL) has kept offers unaltered for Jan’17, post hike in prices in Dec’16 by INR 500/MT to INR 22,400/MT ex-plant.
5. Vedanta Resource have slightly raised their prices by INR 1,000/MT to INR 24,000-24,500/MT FOR Hyderabad, from earlier (in Dec’16) at INR 23,500/MT. The company has also successfully concluded an export shipment for 20,000 MT at an average price of USD 310-315/MT FOB West Coast.
Pig Iron monthly average prices since jul’16
| Month | Durgapur | M-o-M | Raipur | M-o-M | Cuttack | M-o-M | Hyderabad | M-o-M |
| 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 | 22,500 | 2,400 |
| Nov’16 | 20,800 | 0 | 21,300 | -750 | 21,150 | 0 | 22,100 | -400 |
| Dec’16 | 21,400 | 600 | 21,750 | 450 | 21,500 | 350 | 21,700 | -400 |
| Jan’17 | 22,700 | 1,300 | 23,750 | 2,000 | 22,700 | 1,200 | 23,350 | 1,650 |
Prices in INR/MT
Source: SteelMint Research
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