India: Private Pig Iron Producers Reduce Offers Marginally

Participants reported slight fall in domestic pig iron offers owing to weakening domestic & export demand, slump in steel prices and improved domestic supply.

SteelMint also analyzed that in prevailing offers there are not many orders with the mills and they have maintained stock more than average specifically in eastern region which contributes close to 50% of India’s total pig iron production.

In line with steel prices, Billet prices fell significantly in last couple of weeks and this resulted narrowing down price gap between Pig iron & Billet to INR 3,500-3,800/MT in Central & Eastern India and has made buyers cautious.

— Officials from Neo Metaliks in Durgapur reported limited buying inquiries on prevailing offers of INR 27,600-27,700/MT ex-plant. Bulk purchase discount being offered by producer of INR 100-200/MT.

— Electrosteels in Bokaro reported last deals at close to INR 27,500-27,600/MT ex-plant and presently offers are similar.

— Atibir Industries is quoting steel grade pig iron at INR 28,100/MT ex-plant, Giridih (Jharkhand) and trade discount on bulk purchase being offered by producer of INR 500/MT.

— Mesco Steels in Jajpur, Odisha heard to have offers steel grade pig iron at INR 26,700-26,800/MT ex-plant.

— Jindal Steel has lowered offers and trading steel grade pig iron at INR 27,600/MT ex-plant, Raigarh & Granulated pig iron (panther shots) at INR 26,600/MT ex-plant, Odisha.

— Offers in Raipur has reduced to INR 27,800-27,900/MT FoR, meanwhile as per sources one of the producer in Raipur is offering pig iron in merchant market at INR 27,800/MT ex-plant.

— The traders in Northern India reported low demand and offers at INR 30,400-30,600/MT for steel grade & INR 34,600-34,800/MT for foundry grade, FoR Ludhiana & excluding GST.

— As per sources, Neelachal Ispat (NINL) may slightly reduce prices or keep it unaltered as inventories rise with mill. In addition falling steel prices & reduced pig iron offers through the private producers may force NINL to gradually cut offers to ease trade volumes.