Buying inquiries for pig iron among private mills have slowed down since last week, SteelMint learned from trade sources. Hence, the prices gradually fell specifically in eastern India along with improved supply.
As per assessment, the current offers in eastern region, Durgapur is hovering at INR 27,900-28,000/MT, which was traded at around INR 28,500-28,700/MT a week back.
“Traders as well as furnaces have put future bookings on hold in anticipation of further drop in prices” said an official from a merchant pig iron mill in Durgapur.
It was also learned that the government owned large mill in Durgapur has quoted fresh offers for steel grade material at around INR 27,300-27,500/MT ex-plant, however the buyers from Kolkata are not responding at this offer and are still in wait & watch mode with an assumption of prices to remain under pressure amid gradual decline in domestic billet prices.
Coming to Jharkhand, where supply was halted at the beginning of the week, has resumed now and the offers through the sources reported at INR 28,400-28,500/MT ex-plant.
Inline in Central region, Jindal Steel reported slight weak response on bulk sales, however small parcels of steel grade material have been sold at reduced price of INR 29,800-30,000/MT on ex-plant, Raigarh basis.
Further, it was learned from sources that, SAIL’s Bhilai Steel Plant (BSP) has resumed production of pig iron, for which fresh offers are expected to be floated shortly. The last deals by the company for steel grade material were assessed during Dec’19 mid at around INR 24,500/MT EXW-Bhilai.
Leave a Reply