Foundry Grade Pig Iron Offers Fall in Indian Market

Prices for Pig iron with Si 2-2.5% have fallen by around INR 500-1,000/MT M-o-M.

Major foundry grade markets in India are facing poor demand and huge shift in interest within manufacturers (from foundry grade to steel grade). Lower offers for steel grade is said to be responsible for killing foundry market in India.

Eastern market

1. Tata Metaliks, one of the largest foundry grade Pig iron manufacturer in India, has kept offers unchanged for eastern belt at INR 23,000/MT, ex-plant.
2. Secondary manufacturers based in Durgapur have offered foundry grade in the range of INR 20,700-21,000/MT, ex-plant.
3. IISCO-SAIL is heard to have concluded a deal for 3 rakes of basic grade to Howrah at INR 15,650/MT, ex-plant (base price INR 15,900/MT and rebate INR 250/MT).

Northern market

1. Market in north (Ludhiana, Batala) is facing oversupply; governed by festive moods.
2. Major sellers (Sesa, Sona Alloys and Tata Metaliks) are heard to have offering in the range of INR 24,100-24,300/MT, delivered price (including freight and 12.5% ED; VAT extra).
3. IISCO-SAIL in north market is heard to have offered basic grade Pig iron at INR 15,500/MT with additional rebate on booking more than one rake.

Western market

1. Pig iron prices in Ahmedabad and Rajkot have hovered in the range of INR 26,500-26,800/MT (including freight and 12.5% ED; VAT extra).
2. Participants in Gujarat are expected to remain out from market for around a week’s time.
3. Offers in Kohlapur are around INR 27,000/MT (including freight and 12.5% ED; VAT extra).

Southern market

1. Foundry grade offers in Koppal are assessed at INR 24,250-24,500/MT, ex-plant and delivery would be at around INR 27,400-27,600/MT (including ED; VAT extra).
2. Steel grade offers at INR 15,000-17,000/MT, ex-plant (depending upon quantity purchased) in south, has drained foundry market to a large extent.

Market participants are waiting to get more clarity in sentiments after Diwali.