No export deals were concluded during July-Sept’15.
Indian Pig iron exports suffer significantly this year on the backdrop of global slowdown and continuous price fall in sea borne market.
Indian exports were recorded at 371,000 MT during Jan-Sept’15, which was 612,560 MT during the same period in 2014, which is down by 40%. Total exports in 2014 were 741,000 MT.
It was assessed that the Indian Pig iron exporters failed to attract global traders in their export tenders, resulting in zero export in last 3 months.
MMTC remained the largest exporter from India, which accounts for 56% of total exports, followed by Sesa Sterlite (31%) and Vizag Steel (13%).
Thailand was the largest importer of Indian Pig iron, which accounts for 57% of total Indian exports, followed by South Korea.
Global Price Fall & Competitive Billet
SteelMint assessed, owing to continuous fall in Pig iron prices in global market, Indian Pig iron has failed to mark its presence. Pig iron prices at CIS nations (which are considered as the benchmark) have fallen by upto USD 140/MT in last 9 months. Current offers are at USD 190-195/MT FOB Black Sea. Similarly scrap, which is a substitute of Pig iron has dropped by USD 100/MT in global market in last 9 months.
Adding up to the pressure, cheaper billet offered by China to global market has swept rest major Pig iron markets. Thailand, Korea which are considered as important markets for Indian Pig iron exports are heard to have shifted to rolling China billets owing to its cost-effectiveness.
Indian Pig Iron Export Details 2015
| Berthing date | Supplier | Indian port | Vessel name | Qty in MT | Deals in USD/MT |
Delivery terms |
Destination |
| Jan-15 | MMTC | Paradip | Coreocean OL | 27,000 | 393 | FOB | Thailand |
| Jan-15 | MMTC | Paradip | HTC Delta | 39,000 | 320 | FOB | South Korea |
| Feb-15 | MMTC | Paradip | Matumba | 30,000 | 310 | FOB | South Korea |
| Mar-15 | SESA | Mormugao | Latika Naree | 27,500 | 260 | CIF | Malaysia |
| Mar-15 | SESA | Mormugao | Ken Cape | 30,000 | 305 | CIF | Saudi Arabia |
| Apr-15 | MMTC | Paradip | Maritime Champion | 28,500 | 265 | FoB | Thailand |
| May-15 | RINL | Vizag | C. Friend | 43,000 | 260 | FOB | Thailand |
| May-15 | SESA | Mormugao | Mandarin Phoenix | 25,500 | 280 | CIF | Egypt |
| Jun-15 | MMTC | Paradip | Baltic Jaugar | 44,000 | 262 | FOB | Thailand |
| Jun-15 | SESA | Mormugao | ISS Cantata | 30,000 | 283 | CIF | Thailand |
| Jun-15 | SESA | Mormugao | Eastern Star | 5,000 | – | CIF | – |
| Jul-15 | MMTC | Paradip | Loreto | 42,000 | 264 | FOB | Thailand |
Source: SteelMint Research
Outlook
Looking at present scenario of global steel market, Pig iron market does not seem encouraging in upcoming months.
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