Limited pig iron availability in global market has kept export offers supported.
Vizag Steel – a leading state owned Pig iron producer and exporter, had floated an export tender of 25,000 MT basic grade steel making Pig iron for any country other than Nepal. The material offered had specification -Carbon: 3.5-4.8 %, Manganese: 0.50% max, Silicon: 1.5% max, Phosphorus: 0.18% max , Sulphur: 0.06% max. The tender was due on 5 Jul’18.
According to market sources report to SteelMint, the tender received participation from three companies and the highest bid fetched was around USD 375-378/MT, FoB. However after negotiations the company has concluded the tender at around USD 385-388/MT, FoB India.
Indian mills turned active for exports after recent INR depreciation against USD. Exchange rate as of today is at 68.7 against 67.5 a month back.
India exported 97,050 MT pig iron during Jan-Jun’18. Vedanta remained largest exporter with 68% share followed by Vizag Steel with 26% share.
Limited pig iron supply in global market keeps prices supported – Limited availability of Brazilian origin pig iron has kept global pig iron supply tight resulting in prices to remain firm. As per sources, Brazilian pig iron producers are only offering material for August shipments. No new export deals were reported and price assessment stands at USD 380-385/MT, FoB levels.
CIS origin pig iron export price assessment is around USD 385-390/MT, FoB Black Sea and to SE Asian nations the offer would come around USD 400-410/MT, CFR.
Decline in Indian domestic pig iron offers – Indian pig iron offers in domestic market have come down amid increased availability. Neelachal Ispat has reduced pig iron prices for steel by INR 600/MT (USD 9) & Foundry grade by around INR 1,000/MT (USD 15) on 6th July.The latest offers for Steel (N1) grade material are assessed at INR 27,900/MT (USD 406) & for Foundry (N2) grade at INR 28,500/MT (USD 415), ex-Cuttack, Odisha.
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