Foundry grade Pig iron manufacturers based in the Southern part of India have pulled down offers after maintaining them for a quiet long time.
The Goa based producer, with an installed production capacity of 625,000 MnTPA is presently utilizing about 70% of the total capacity.
Its daily output stands at 30,000-35,000 tons and is offering the material at Rs 300/MT less to Rs 27,200/MT (ex works), had last altered prices in the first week of January.
“Demand is not picking up and the company does not have many booking orders coming in.
The input cost remains high on expensive Iron ore available from Karnataka e-auctions, ultimately pulling down Pig iron offers.
We are also making 2,000-3,000 tons of Basic grade Pig iron depending on requirement of buyers”, mentioned the manufacturer.
At Koppal (Karnataka), prices are quoted lower by Rs 200/MT to Rs Rs 28,500-29,000/MT (ex works) after being maintained for about two and a half month's time, as market is quiet dull and not many labors are available.
Supply of Pig iron is quiet low in Durgapur (West Bengal) and manufacturers have limited quantity to offer as of now.
In July:
“We foresee some improvement in Pig iron sales as well as prices in July as demand from the automobile sector and manufacturers of pumps, motors and oil engines is anticipated to increase the consumption levels in Foundry grade material”, said the Koppal based Pig iron producer.
Basic grade Pig iron:
Indian Basic grade Pig iron makers hold prices at similar levels seen in the mid of the month as NINL's offers remain unvarying.
They are to take a decision regarding any alteration in prices in the first week of July as demand has not been encouraging this month.
Most of the manufacturers are offering discounts on purchases of big quantity of the material. Offers face some correction by Rs 200/MT and Rs 800/MT to Rs 23,000/MT respectively at Durgapur and Bokaro due to weak buying.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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