Steel and foundry grade Pig iron manufacturers across Indian market, have maintained offers from the beginning of the month.
In the month of August and September, Pig iron prices went up sharply not because of improved demand, but sliding Rupee against USD and expensive imports of Coke which raised the input cost.
Met Coke prices have increased to USD 271/MT CFR India in a couple of weeks, which was quoted at USD 266/MT CFR in the end of the first week.
Cost of Production remains high for Pig iron Plants
Source: SteelMint
* Till 24 October
Slow off take of finished steel and weakening prices of semi finished products have restricted any uptick in Pig iron prices. Manufacturers are unhopeful of any increase in offers by October end.
NMDC and Iron ore miners based in Odisha also increased prices in October. Pig iron plants based in Southern region are dependent on expensive Iron ore available from Karnataka e-auction, which has resulted in higher input cost.
Source: SteelMint
* Till 24 October
Slowdown in Indian economy has also impacted trades and it is expected that the Indian economy will grow at 4.9% Y-o-Y in FY14, which will be equal to the 5% growth rate in FY13. Indian Rupee has remained in the level of 60.93-61.72 against USD in the last couple of weeks.
NINL might offer Pig iron to Overseas Buyers this Week
It is expected that NINL might float a 60,000 MT Pig iron export tender in the current week itself for delivery schedule in the 2nd half of November (1st lot) and 1st half of December (2nd lot).
Though, the largest producer had lowered domestic Pig iron offers on 09 October but demand continues to be weak.
RINL is yet to take a decision about the 30,000 MT Pig iron export tender floated on 16 September. It might scrap the tender if H1 bidder is unwilling to take the material at a higher price. Also, the Goa based Pig iron manufacturer might finalize a 30,000 MT Steel grade Pig iron export deal by end of the current week.
Current Pig iron Prices across Indian market:
|
Place |
Steel Grade |
Place |
Foundry Grade |
|
Cuttack |
23,000-23,500 |
Cuttack |
23,500 |
|
Raipur |
25,000 |
Raipur |
26,800 |
|
Raigarh |
24,300-24,500 |
Jharsuguda |
25,000 |
|
Rourkela |
23,600 |
Durgapur |
27,400-27,500 |
|
Jharsuguda |
23,300 |
Mumbai |
27,500-28,000 |
|
Durgapur |
24,000 |
*Kolhapur |
29,300 |
|
Mumbai |
25,500 |
Girdih |
25,500 |
|
*Kolhapur |
24,000 |
Chennai |
26,500-27,000 |
|
Vizag |
24,000 |
Ludhiana |
31,500 |
|
Bokaro |
24,000 |
Koppal |
28,125 |
|
Giridih |
24,200 |
Goa |
27,500 |
|
Ludhiana |
30,000 |
Hyderabad |
26,800 |
|
Chennai |
24,500-25,000 |
|
|
Basic Prices (INR/MT)
Ludhiana: VAT extra
*Incl freight only
Export (USD/MT FoB)
CIS (Ukraine): 375-380
India: 373.58
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