Industry experts believe fall in coking coal price has increased pig iron production in East India. It was also added that weak global sentiments will improve domestic supply soon.
Market participants added, the manufacturers who has limited production during Nov-Dec’16 owing to expensive coal and low domestic realization, are likely to resume operations.
Global coking coal prices are in downward trend by USD 7-8/MT W-o-W. Currently, coking coal (Premium HCC) offers are prevailing at USD 184-186/MT CFR India which was above to USD 315/MT CFR, during Nov’16.
Trade participants in West Bengal & Jharkhand reported increase in supply by few manufacturers. Plant who has increased production are Kajaria Iron Company (KIC) & Jai Balaji Steels in West Bengal (Durgapur) & Swati Iron and Balmukund Steels in Jharkhand in the last week.
Trade Wise:
1. Jayaswal Neco Industries in Raipur yet to open fresh prices. Moreover, traders in the market are providing Odisha’s Pig iron at INR 24,000-24,300/MT FOR.
2. Jindal Steel’s in Raigarh offering steel grade at INR 24,500/MT ex-plant.
3. No Fresh tender by RSP (Rourkela Steel Plant) in Jan’17. Last tender was concluded at INR 20,400-20,600/MT for around 8,000 MT.
4. NINL roll-over prices for both steel & foundry grade at INR 23,000/MT & INR 23,500/MT ex-plant, respectively. However, there was speculations about to cut prices by the company as soon as they close the export tender.
5. Atibir Industries in Giridih, Jharkhand have reduced prices by INR 500/MT to INR 22,600/MT ex-plant.
6. Traders in Ludhiana reported further fall in prices due to weak demand. The offers are as follow – Steel grade at INR 27,000/MT & Foundry at INR 30,000/MT FOR.
7. Billet manufacturers in Hyderabad got offers by Gerdau Steel & Santwana Ispat at INR 23,500/MT & by Vedanta Sterlite and Vizag Steel (RINL) at INR 24,000-24,500/MT FOR.
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