Indian Pig iron manufacturers maintain offers and are able to sell out the material in good quantities over increased demand from induction furnaces, who are facing acute shortage of imported Scrap.
Ferrous Scrap imports dropped by 30% M-o-M in August because of free fall in Rupee against US dollar and domestic offers for Scrap went up by Rs 1,000-2,150/MT in last one month.
Consumption of Pig iron results in 96% recovery in comparison to 90% recovery from using Scrap. But, as Scrap is offered at lower prices than Pig iron, the former is mostly consumed in large quantities in Indian domestic market.
Pig iron offers have sustained at high levels owing to rise in domestic Scrap prices, hike in power tariffs, end of monsoons and as depreciating Rupee against dollar has made imports of Coke and Scrap quiet expensive.
Low supply of Pig iron from West Bengal based manufacturers and of Pooled iron from Tata Steel, has resulted in improved demand from Jharkhand located Pig iron producers.
Leave a Reply