Factors Supporting Indian Pig Iron Prices

Indian pig iron prices find support on rising raw material and steel prices in domestic and global market. Some manufacturers have raised their offers by around INR 500/MT (USD 8) and some are yet to declare.

Steel grade Pig iron offers are hovering at INR 24,200/MT (USD 373) ex-Durgapur, which is at the moment one of the largest spot market.

Factors supporting Indian pig iron prices

1. Indian billet prices have increased by upto INR 1,500/MT (USD 23) in last one week on export orders and low inventories

2. Indian major iron ore miners have increased prices by INR 200-400/MT (USD 3-6)

3. Global coking coal prices increase by USD 25-30/MT in last one month owing to congestion at one of the major port in Australia. Current offers for premium HCC from Australia at USD 206-208/MT FOB Australia.

4. Melting scrap prices in global market increased by USD 10-15/MT in last one month

5. Indian pig iron exporters have become active on rising scrap prices. Two bulk deals have been reported from India in November at around USD 335-340/MT FOB India

Trade Wise

1. The stockiest in Raipur – Central India are offering Pig iron at INR 25,000-25,200/MT and by the producer the offers are heard at INR 25,250-25,500/MT ex-plant & excluding GST

2. Electro Steels (Bokaro) is offering steel grade material at INR 24,000-24,100/MT ex-plant and has concluded few deals to Durgapur at INR INR 24,100-24,300/MT FOR

3. Bhushan Power & Steel (Jharsguda,Odisha) is offering Pig iron at INR 24,200-24,300/MT ex-plant

4. Neo Metaliks in Durgapur – West Bengal offers steel grade pig iron at INR 24,200/MT against last week offers of around INR 23,800-24,000/MT

5. Jindal Steel has offered Pooled iron at INR 22,000/MT & Ferroshots at INR 23,000/MT (ex-Angul, Odisha)

6. JSW Steel offers steel grade pig iron from Its Dolvi, Maharashtra plant at INR 24,000/MT ex-plant

7. Trade participants in North region – Ludhiana indicates further increase in prices in near days as supply of material are expected to limited with closure of NINL blast furnace. The latest offers are reported for foundry grade at around INR 28,500/MT & steel grade at INR 26,500/MT FOR, up by 500-700/MT, W-o-W

8. SAIL (Burnpur) raise prices by INR 500/t to INR 23,500/MT, soures report

9. Indian pig iron exports stood at 0.5 MnT during Jan-Oct’17. MMTC which exports on behalf of NINL remained the largest exporter at 0.22 MnT followed by Vedanta at 0.15 MnT and RINL at 0.07 MnT.

10. SteelMint’s Indian Pig iron export price assessment stood at USD 335-340, FoB. Meanwhile, the global offers hovering at USD 340/MT FoB Brazil & USD 335-340/MT, FoB Black Sea.

11. MMTC, export tender of 5,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL) is expiring on 05 Dec’17.

12. Vizag Steel’s export tender of 25,000 MT Pig iron which got expired on 21 Nov’17 heard to have concludes at USD 337-338/MT FoB India. Prior to this, Western India based an private pig iron manufacturer has concludes export deal at USD 340/MT, FoB.

Reference Prices as on 30th Nov 2017

Basic prices
Prices Excluding Royalty, DMF & NMET. GST @ 5% extra*
Source: SteelMint Research