Indian pig iron exporters are eyeing higher prices owing to improved demand and rising scrap prices in global market. Price assessment for Steel grade pig iron having a chemical composition C-3.6-4.3%, Si-upto 1.24%, Mn<1%, S-0.05% max, P-0.2% max is assessed at around USD 330-340/MT FoB India main port. Although no fresh deals were reported at the time of publishing.
Last deal from an Indian private pig iron manufacturer was reported at around USD 330/MT FOB India in the mid July. Another deal of 25,000 MT was under negotiation and price expectation was around USD 340/t FOB.
Buyers say, price expectation of the seller is high as global prices should be around USD 325-330/MT FOB India.
Although with consistently rising scrap prices in global market, Indian pig iron sellers would be eyeing higher prices. Notably, imported scrap prices in Turkey increased by USD 10-11/MT in last one week. Current offers for HMS 80:20 being assessed at USD 318/MT CFR Turkey.
MMTC may come with fresh tender soon
Indian state trading house MMTC, may come up with fresh tender soon, possibly in first week of August, according to sources. Last tender by MMTC was concluded at USD 312-313/MT FoB India east coast for Bangladesh.
Indian pig iron exports jumped eleven times in H1 CY17 against H1 CY16. Country exported 395,050 MT pig iron during Jan-Jun CY17 vs 34,700 MT during Jan-Jun CY16.
Domestic prices likely to remain strong
Indian pig iron prices likely to remain strong on improved global demand and better export realisations. Indian government owned and largest merchant pig iron (steel grade) manufacturer NINL may also increase domestic offers.
Last offers by NINL for Steel (N1) grade was at INR 20,000-20,250/MT and INR 20,250-20,500/MT for Foundry (N2) grade (basic prices, ex-Cuttack , which expired on 30 Jun’17. Company is yet to review its domestic prices.
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