Pig iron prices in Indian domestic market increased by INR 200-500/MT (USD 3-8), W-o-W.
SteelMint’s price assessment for pig iron, silicon up to 1.5% in the domestic market is at INR 21,500-23,000/MT (USD 330-354), up by INR 200-500/MT against past week at INR 21,300-22,800/MT (USD 327-350).
The reasons sited for the strengthening pig iron prices are :
Supply Shortage: domestic supply from the manufacturers end hampered prior to GST, in home consumption and also due to improved export demand which has reduced the availability of material in domestic market specifically in Central, East, South & North regions.
Improved export demand: Global demand have given a push for Indian made pig iron owing to rising global scrap prices.
India’s large pig iron exporters namely, MMTC on behalf of NINL, Vedanta Resources and RINL (Vizag Steel) are continuously dealing with global buyers.
MMTC during the June 2017 have concluded couple of export deals (total quantity at 60,000 MT) at the price range of USD 300-310/MT.
MMTC’s 30,000 tonne tender is expiring today and apart from that a private manufacturer is negotiating for 25,000 MT cargo which may get concluded soon.
India’s total bulk pig iron export was recorded at 336,300 in FY17 surge by 26% against 265,900 MT in FY16. Further on monthly comparison it moved to 68,500 MT in June’17 compared with 25,000 MT during May’17.
Rally in Coking coal prices: Coking coal prices which were all time low in June 2017 at USD 148-150/MT CNF have presently increase to USD 165-167/MT.
The prices surge as a result of the force majeure, have gone up significantly. Prior to the force majeure, Coking Coal prices were in the rising mode due to the demand getting stronger by Chinese steel makers. The force majeure has in fact compounded to the force behind the already rising prices of the coal.
It seems that it may remain on rising mode as supply disruptions may not to leave the Australian Coking Coal market.
Scrap prices continue to Surge: Scrap, a major substitute of pig iron, is rigorously moving upward in global market. The offers for Shredded scrap are currently evaluated at USD 310-315/MT CNF which was at approx USD 295/MT during same period last month (June).
Trade Updates
1. Officials from Jindal Steels are reported offering Granulated Pig iron at INR 20,500/MT & Pooled iron at INR 19,200/MT ex-plant Angul, Odisha.
2. Tata Steel is offering Granulated Pig iron at INR 21,000/MT & Pooled iron at INR 19,500/MT ex-plant.
3. RSP a SAIL’s unit held tender on 12 July, 2017 received good response for the sale of 5,000 MT pig iron. According to participant the bid price rose to INR 20,800-20,900/MT from the opening bid at INR 20,400/MT.
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