Indian Pig Iron Export likely to fall by 50% in FY15

Declining Pig iron prices in the global market coupled with higher production cost has led to sharp fall in Pig iron export during FY15 (Apr’14-Jan’15).

Pig iron export by the country is likely to fall by 50% in current fiscal. Till February in FY15, total export has touched 4.5 lakh MT against 11.04 lakh MT in FY14 and expected to reach the level of 5 lakh MT by the financial year end.

Black Sea Prices decline Sharply

A sharp decline in Black Sea Pig iron prices (considered as a benchmark) has led to price differences in global market. This fall in prices is the aftermath of cheaper Billet & Scrap coming from Russia, which took advantage of offering at low price on weak currency (Ruble). Prices at Black Sea have witnessed a sharp fall of around USD 60/MT in a month’s time and the material is currently being offered at USD 280/MT, FoB Black Sea.

Cheaper Billet Offers from China & Russia disturb Indian Export Market

India preferably exports Pig iron to South East Asian countries like Thailand, South Korea, Singapore and a small quantity to Middle East. While talking to few market participants in these nations, SteelMint assessed that cheaper Billet offered from China & Russia, has shifted importers’ interest from Pig iron to Billet.