With limited production and high prices of Pig Iron in Indian market, buyers are preferring steel scrap.Though, tight supply of iron ore and expensive imports of coal, chances are low that Pig Iron prices will correct in June.
“Pig iron is available at Rs 27,800-28,000/MT (Ex Works). Whereas, fresh scrap is available at Rs 27,800/MT (Ex-Works), which has a better yield. Buyers are more interested in sourcing scrap”, said a local trader based in Raipur, Chattisgarh.
With Rupee depreciating against dollar, it gives good realization for exports. Big players like RINL and NINL are focusing more on exports as markets are hovering around $475/t FOB East Coast India.
Buying is forecast to stay slow in the first week of June, with only scarce deals possible in case of further price cuts.
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