Foundry grade Pig iron prices in major markets have witnessed downfalls upto INR 1,500/MT in a month’s time; selling lowest at INR 26,000/MT (delivered) in Indian market.
Cheaper Imported Scrap prices of HMS & Cast iron to India have brought threats for Indian Pig iron together with ongoing domestic price competition.
Primary manufacturers selling Pig iron (of Si content 1.5%-1.8%) at lower offers of INR 18,000-19,000/MT to Cast iron manufacturers has become a major concern for Foundry grade manufacturers in India. This is trapping the market share from Foundry manufacturers and leading to huge price cuts in the material.
Currently, Foundry grade Pig iron are offered at INR 26,000-26,500/MT delivered Ludhiana (Punjab), INR 28,000/MT delivered Kolhapur (Maharastra) and around 28,400/MT delivered Rajkot (Gujarat). Falling demand and lower prices have forced some manufacturers to switch to steel grade Pig iron.
Pig iron Prices as on 12 Mar’15
| Steel Grade Market | Basic Rates | Foundry Grade Market | Delivered Rates# |
| Cuttack | 18,100 | Ludhiana | 26,000-26,500 |
| Rourkela | 18,500 | Rajkot/Ahmedabad | 28,400-28,500 |
| Durgapur | 19,300 | Mumbai | 29,000 |
| Raigarh | 20,500 | Kohlapur | 28,000 |
| Raipur | 21,000 | Belgaum | 28,000 |
| Vizag | 19,300 | Koppal | 28,000 |
| Giridih | 19,200 | Coimbatore | 26,500-27,000 |
| Ludhiana# | 24,000 |
#Prices in INR/MT, including excise 12.5%
Source: SteelMint Research
[su_note note_color=”#c2d6e9″ text_color=”#0b0a0a”]Govt waives off excise duty on SG grade Pig Iron
Excise duty on Pig Iron (SG Grade) and Ferro Silicon-magnesium for manufacture of cast components of wind operated electricity generators is being fully exempted, subject to certification by MNRE in this regard, in order to promote green energy.[/su_note]
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