Indian Pig Iron Demand falls in Global Market

Price pressure build by China in international market hits Indian Pig iron export market, resulting poor response from buyers.

Indian Pig iron manufacturers, who were receiving good realization in export market on the background of geo-political tension in CIS nations, are now facing poor response from international buyers.

MMTC, which had issued its last export tender on 05 Sep, 2014 for 40,000 MT Pig iron, was unable to receive even single bidder for the tender opened on 17 Sep, 2014. Company was forced to rollover the quantity and open fresh tender on 18 Sep, 2014.

Another largest Pig iron exporter in India, RINL had issued tender on 05 Sep, 2014 and had received single bid for the export tender on technical bid held on 25 Sep, 2014. Sources report, STX Corporation, a South Korean company, was the only participant in the export bid.

Indian Pig iron exporters had received quite handsome bids in last few export tenders touching USD 398/MT FoB Indian East Coast. However, the present Seaborne Iron ore prices, which have slipped to 5-year low and steel products offered by China and other South Asian countries in cheaper rates, have disturbed the complete steel dynamics of global market. Manufacturers are shifting their preference and importing Billet instead of Scrap & Pig iron, as importing Billet seems more economical.

India had exported total 75,000 MT of Pig iron in the month of August, which has declined to 56,500 MT in September.

Another large Pig iron manufacturer based in western region heard to have shipped 25,000 MT from Mormugao port to Saudi Arabia at around USD 400-402/MT FoB. But, participants highlighted that deal was concluded before market became bearish. The company has made its last shipment of 22,000 MT Pig iron on 10 Sep, 2014 at around USD 395/MT FoB.

[su_box title=”Note” style=”soft” box_color=”#a2a5a5″ title_color=”#0e0d0d”]1. Indian Pig iron export prices uptick during Jul’14-Aug’14 owing to rise in CIS Pig iron prices, as a result of geo-political crisis.
2. Indian Pig iron exports have received poor response on the backdrop of falling Seaborne Iron ore prices, which is making room for China to offer low-priced Billet in the global market.[/su_box]