Bangladesh based furnaces are preferring Indian pig iron over Russian or Ukrainian. Reason being competitive offers and less voyage time.
Recently, Indian manufactures have managed to conclude deals for over 50,000 MT pig iron, for which most of will be shipped to Bangladesh. Average price for Indian pig iron is assessed at around USD 260-265/MT CFR Chittagong (Bangaldesh) against CIS offers of over USD 265/MT CFR Chittagong.
Shipment from india will have a voyage time of 10-12 days where as CIS region pig iron will be delivered in 20-25 days.
Indian exporters are also exploring opportunities for HBI and DRI (gas based) to Bangladesh market. Recently JSW steel heard to have sold around 20,000-25,000 MT HBI to Bangaldesh at an average price of USD 222/MT FOB India west coast. Which should be equivalent to USD 240-245/MT CFR Chittagong.
Steel smelting capacities have increased in Bangaldesh in 2016 , which has increased import demand for scrap, DRI and HBI to Bangladesh.
Global pig iron prices as on 25 Jul’16
| Particular/Delivery | Size/Grade | Prices | W-o-W | M-o-M | Q-o-Q |
| FOB Brazil | Steel Grade | 235 | – 10 | – 10 | – 35 |
| FOB India | Steel Grade | 242 | + 2 | + 8 | – 38 |
| FOB Russia | Steel Grade | 230 | – 5 | – 5 | – 55 |
Prices in USD/MT
W-o-W: week on week, M-o-M: month on month, Q-o-Q: quarter on quarter changes
Source: SteelMint Research
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