Indian Pig Iron Trade Log, Week – 37

With the price increase by NINL, the private Pig iron manufacturers in Central & East India also followed the suit and have raised their offers around INR 500/MT (USD 8) despite moderate trade activities in the local market.

NINL, is India’s largest merchant steel grade pig iron manufacturer had increased its prices twice in Aug’17 to a total of INR 4,250/MT (USD 65). Further, in latest price circular (07 Sept) the company had surged the offers by INR 1,000/MT to INR 25,000-25,250/MT (Ex-Mill).

The pig iron producers in East India – West Bengal & Jharkhand mention that “domestic demand is stagnant on declining billet prices, although rising coal prices are a major cause for the price rise”.

Notably, global coking coal prices have further gone up to USD 224-225/MT CNF India, which was around USD 200/MT a month back.

SteelMint’s price assessment for domestic steel grade pig iron (Si upto 1.5%) are stood at INR 24,500-25,800/MT (USD 383-403) ex-works & excluding of GST at 18%. Where as export offers are evaluated at USD 355-365/MT FOB India.

Trade Log:

1. Offers in Central India – Raipur have increased to INR 25,700-26,000/MT against last week assessment of INR 25,000-25,500/MT. Induction furnaces are also procuring CI molds & pooled iron which cost is around INR 24,000/MT FOR & excluding of GST.

2. Jindal Steel raised offers around INR 500/MT – Granulated Pig iron at INR 23,800-24,000/MT & Pooled iron at INR 22,800-23,000/MT from its new Angul, Odisha plant.

3. Durgapur based Neo Metaliks have increase offers to INR 25,000/MT which was last offered at INR 24,500-24,700/MT (Ex-Mill).

4. According to trade participants, offers for steel grade material by SAIL’s DSP (Durgapur Steel plant) & IISCO have reduced around INR 500/MT to INR 24,500-24,700/MT ex-plant.

5. Suppliers in Ludhiana, North India, have increased offers by INR 500/MT despite weak trade activities. Offers for Steel grade at INR 27,500/MT and foundry grade at INR 30,000/MT; including local freight & excluding GST at 18%.

6. In South India, Hyderabad the last offers heard at INR 25,500/MT FOR. Although, currently there is no supply by the private pig iron manufacturers, sources reported.

7. MMTC’s export tender for 30,000 MT pig iron on behalf of NINL expired today i.e. 08 Sept.

8. SteelMint pig iron export assessment at USD 355-365/Mt FOB India.

9. Nalco floated a tender to purchase 2,500 MT pig iron. The bid due date for the tender is 04 Oct’17, 13:00 Hrs. (IST).

Indian Pig iron reference prices as on 08 Sept’17

Prices in INR/MT
Source: SteelMint research