Vizag Steel in its latest move has reduced Pig iron offers by INR 1,000/MT (USD 16) for March deliveries on lower export realizations.

Vizag Steel, one of the largest merchant producer of Pig iron in India is offering steel grade Pig iron at INR 19,300/MT on ex-works basis. The company has been consistently pruning its offers for past few months. It last offered the material at INR 20,300/MT (ex-works).

However, company official are yet to confirm the current offers.

Continuous fall in global Pig iron prices (i.e down by USD 30/MTW-o-W to USD 250/MT FOB Black Sea) is becoming a chief concern for the company, resulting in poor export responses. In fact, the company called off its recent export tender of 30,000 MT held on 11 Feb for the same reason. Disappointing export bids along with ongoing price war in the domestic market are held responsible for sharp cuts.

To increase challenges further, another large manufacturer, NINL, came up with tempting offers of INR 18,800/MT for Pig iron. Previously  company also offered discounts up to INR 700/MT on INR 18,800/MT, making it tougher for competitors.

Given that prices in other major markets remain stable, budget announcements wrapped in huge infrastructural investment are expected to support the market and further stabilize Pig iron prices.

Pig iron Highlights:

• Manufacturers at Durgapur are offering Pig iron in the range of INR 19,200-19,400/MT, delivered
• Jindal Steel at Raigarh sold Pig iron at INR 20,800-20,900/MT (ex-Plant)
• Neco is offering Steel grade Pig iron at INR 21,300-21,400/MT (ex-Raipur)
• Pig iron at Hyderbad is available at INR 21,900-22,000/MT, delivered
• Neelachal Ispat offers N1 grade Pig iron at INR 18,800/MT till 10 Mar’15
• RINL opens export tender for 30,000 MT Pig  iron till 17 Mar’15.

*Prices in USD/MT; rest in INR/MT
Sources: SteelMint Research