India: Limited Scope For Further Rise In Pig Iron prices – Trade Participants

The prices of pig iron has least chance to increase further in the current circumstance as per trade sources. This scenario is due to limited bookings on increased prices amid falling coking coal prices and increase in pig iron supply in East India.

With the significant improvement in supply, coking coal import offers have declined again. The latest import offer for the Premium HCC was assessed lower at USD 190/MT FOB Australia & USD 214/MT CFR India.

Snapshot of Major markets

As per Sources the current offers for pig iron by NINL had very limited bookings due to high prices and sparse trading on billets. Thus, limited sales may result in reduce prices and stability as well as fresh price circular. The company has rapidly increased prices by INR 1,500/MT (USD 22) in the 2nd Week of current month for both steel & foundry grade.

Similarly, in West Bengal, where trade is not that active at the offer price of INR 23,000/MT. A trader in the market mentioned, increase in supply from the coming week as 2 plants (Kajaria Iron Company and Jai Balaji Steels) have resumed operations which were closed for a month duration.

In Raipur steel grade offer by directly local market based manufacturer heard at INR 24,500-24,700/MT ex-plant. While, traders in the market are selling Odisha’s (NINL) material at INR 24,000-24,200/MT FOR. The buyers (Ingot/billet manufacturers) reported healthy availability as they are forced to book material at current offers by Pig iron traders.

Tata Steel’s in Odisha is offering ferroshots at INR 22,300-22,500/MT & Pooled iron at INR 21,500/MT ex-plant. SteelMint assessed, moderate trade activities at this offers on unsupported billet demand.

Traders in Ludhiana who procured material from East & Western India mentioned strong supply for both Steel & Foundry grade materials. And they added that there less purchasers in the market.

Offers in Hyderabad remain unaltered which may probably increase by INR 1,000/MT. Billet manufacturers in the market received firm offers by Vedanta Sterlite at INR 23,500/MT FOR.