Amid significant fall in domestic billet prices, the Indian pig iron producers are reeling under selling pressure to cut prices, specifically in eastern region where the major merchant suppliers are active.
The Indian billet prices slump by INR 1,000-1,500/MT (USD 14-21) W-o-W and this has narrowed down price gap between Pig iron & Billet which is currently at INR 2,000-2,500/MT, as per producers in eastern India which should not be less than of INR 3,000//MT. Hence demand for pig iron continue to be weak, leading to piled up stock among merchant suppliers.
The latest offers for Steel grade pig iron is hovering at INR 28,000-28,300/MT in Durgapur & Jharkhand & INR 27,000-27,400/MT in Odisha (ex-works), in eastern region, fall by INR 500-800/MT (USD 7-11) W-o-W.
Suppliers Overview –
— As per officials of Neo Metaliks in Durgapur, demand is quite dull even though the prices reduced. The offers for Steel grade pig iron stated at INR 28,400-28,500/MT, which was about INR 28,800-29,000/MT towards the beginning of last week, (ex-plant).
— Similar comments being received from Atibir Industries where fresh offers through the officials reported at INR 28,300-28,800/MT as against last week at INR 28,800-29,300/MT (ex-plant), fall by INR 500/MT.
— As per officials of Electrosteel in Bokaro, Jharkhand there are no such major inquiries and latest offers reported at around INR 28,000/MT, which was last traded at INR 28,300-28,500/MT ex-plant.
— Jindal Steel has lowered prices by around INR 500/MT and latest offers for Steel grade pig iron reported at INR 28,200/MT ex-plant, Raigarh & Panther shots (granulated pig iron) at INR 26,400/MT ex-plant, Angul, Odisha.
— Steel grade pig iron offers in Central India- Raipur & Raigarh hovering at INR 28,200-28,400/MT FoR, down by INR 300-500/MT (W-o-W) on price corrections in eastern markets.
— Ludhiana, North India based traders have reduced prices by INR 800-1,000/MT in a week on improved supply & falling steel prices. The latest offers for steel grade pig iron reported at INR 30,300-30,500/MT & Foundry grade at INR 32,400-32,600/MT FoR Ludhiana & excluding GST.
— SteelMint’s last Pig iron export price assessment was at about USD 355-360/MT FoB India, USD 340-345/MT FoB Brazil and USD 340-350/MT FoB Black sea.
— Seaborne coking coal prices continued to fall as trading activity remained muted in the China market. The prices for the Premium HCC grade are assessed at around USD 209/MT FOB Australia, down by USD 11/MT than the closing price in the week gone by (as on 28 Dec’18).
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