India: Pig Iron Manufacturers experiencing Mixed Response

Pig iron market is between push-pull of raw material & finished demand.

Indian secondary Pig iron market is experiencing the mixed response. Prices of Pig iron were under correction in few places, whereas some have maintained their prices.

On contradictory to it, prices at eastern market like Durgapur has picked up in couple of days owing to sharp rise in Ingot prices.

Market at this juncture is witnessing mixed sentiments on a side where prices of raw material (Iron ore) have sharply declined; on the other hand, there is rally in finished long market. This improved demand in finished long is pulling the semi finish market upside. On contradictory, fallen Iron ore & Coal prices are pushing the market downside. 

[su_quote cite=”A source of SteelMint in Hyderabad“]RINL is providing additional discount of INR 500/MT on quantity purchase even after reducing its offers by INR 750/MT to INR 23,500/MT (Ex-Vizag).This has affected the nearby South market leading to correction in prices.[/su_quote]

Appreciating INR led to non feasibility of export with lower realization, so major Pig iron exporting units in India are currently focusing on domestic sales. It is being anticipated that currency would grow further and build pressure on export as well as domestic prices of Pig iron.

Feasible imported offers for Scrap flowing down to India coupled with workable Sponge iron (C-DRI) prices are attracting steel mills more towards them, putting pressure on Pig iron prices.

Domestic Offers for Pig Iron 

Basic Price in INR/MT
Ldh: VAT extra
Kol: Incl freight only
Dgp: Tata Metaliks