Pig iron prices in across major Indian markets reported downfall up to INR 1,700/MT (-8%) in Feb’17, M-o-M.
During the month prices remain volatile as in the beginning of Feb’17 trades were thin, while later part of the month the large producers has received over whelming response by global as well from Indian buyers.
Analyzing the raw materials price movements, Coking coal prices fell by USD 8-10/MT M-o-M to USD 174-175/MT CNF India but regained in the later month, which was at USD 185/MT during Jan’17. Moreover, in same time period Indian Iron ore prices were unaltered but there is arise of INR 300/MT for Mar’17 delivery.
On monthly average basis, Pig iron offers in Feb’17 were recorded in the range of INR 21,000-23,400/MT (USD 315-350). While during Jan’17, it was traded at INR 22,500-23,900/MT (USD 327-358/MT) ex-works.
Average prices of major mandi’s during Feb’17 are as follow – at INR 21,950/MT (-3.30%) ex-Cuttack, INR 21,350/MT (-5.95%) ex-Durgapur, INR 21,000/MT (-7.49%) ex-Giridih, INR 23,400/MT (-1.47%) ex-Raipur & INR 23,200/MT (-0.64%) ex-Hyderabad. Price changes are compared to monthly average of Jan’17.
Large producers Update
1. RINL has roll over domestic prices for Feb’17 while, surge for Mar’17 by INR 300/MT to INR 22,700/MT ex-plant. Where as in Feb’17 the company has concluded couple of export deals at the price range of USD 297-312/MT FOB; total quantity was at 55,000 MT.
2. In the beginning of Feb’17 the NINL has reduced domestic steel grade prices by INR 1,400/MT to INR 21,600/MT. Although, MMTC on behalf of NINL has concluded an export deal of 30,000 MT at the price of USD 307/MT FOB.
3. Vedanta Resources based in Western part of India also known as merchant seller for both grade pig iron has surged domestic prices later of Feb’17 up to INR 1,000/MT. Also, the plant has successfully completed its two export shipments of total quantity 50,000 MT and at the average deal price of USD 310-315/MT FOB.
Steel grade Pig Iron monthly average prices since Jan’16
| 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 | + 600 | 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 | 22,500 | + 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 |
| Feb’17 | 21,350 | – 1,350 | 23,400 | – 350 | 21,950 | -750 | 23,200 | – 150 |
Prices in INR/MT
Source: SteelMint Research
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