Indian Pig iron Prices Soar, Supported by High Coking Coal Prices

Indian pig iron prices continue to surge due to substantial rise in global coking coal prices.

Currently, Australian Coking coal prices have crossed USD 283/MT over supply disruption due to the damages caused by the Debbie cyclone which restricting coal transportation.

Hence, with rigorous increase, the prices of pig iron in domestic market has reached 30 month high; similar level of prices were seen in July’14.

The fresh offer price for steel grade material are assessed at INR 24,700-25,000/MT ex-Raipur (Central India), INR 25,000-25,500/MT ex-Durgapur (East India), INR 24,500/MT FOR Hyderabad (South India) & INR 30,000-30,500/MT FOR Ludhiana (Northern region).

Trade Updates

1. Jindal Steel in Raigarh is offering steel grade material at INR 24,700-24,800/MT ex-Raigarh, which was traded at INR 24,500/MT last week

2. Suppliers in Raipur are trading pig iron at INR 24,700-24,800/MT. Moreover, according to the sources; Raipur based Jayaswal Neco Industries offer is at INR 25,000-25,200/MT ex-plant

3. In Durgapur, KIC (Kajaria Iron company) and Neo Metaliks have traded steel grade material at INR 25,000/MT which is now increased, with present offers at INR 25,500/MT; trades yet to take place on further increased prices, according to the trade participants

4. Atibir Industries in Giridih has hiked the prices by INR 1,000/MT to INR 24,000/MT ex-plant

5. Ludhiana based trade source added, due to supply disturbance prices gained momentum ; steel grade offers at INR 30,000-30,500/MT & foundry at INR 33,500-34,000/MT FOR.

6. The billet manufactures in Hyderabad reported offers for Steel grade by Gerdau Steel at INR 24,500/MT & by Vedanta Resources at or above INR 26,000/MT FOR

7. Indian bulk pig iron exports increase 25% y-o-y in FY17; the total exports was reported at 336,290 MT against 265,900 in FY16

8. MMTC’s export tender of 30,000 MT expiring on 13 Apr. Earlier, RINL export tender concluded around INR 320-325/MT which increased by USD 15/MT compared to last export deal.

9. Tata Metaliks further raise foundry grade prices by INR 1,000/MT to INR 28,000/MT ex-plant, Kharagpur, West Bengal