Pig iron exports from India witness a drop of 40% Y-o-Y, on account of falling global prices & currency fluctuation.
Export of Pig Iron in FY 15 reached to 0.6 MnT less by 0.4MnT compared to export figures of last fiscal. Pig iron exports from India last year touched around 1 MnT.
Major exporters in India for Pig Iron are MMTC, Vizag Steel and Sesa Sterlite. MMTC and Vizag steel offer their material through tender route, while Sesa Sterlite sells it directly.
Though there were many reasons responsible for steep fall in Pig iron exports, a few of them stood out:
- Lower Pig iron offers for export from Russia and Brazil, as benefits of weak currency (of exporters)
- Sharp fall in global Scrap prices made it a preferred choice of importing Scrap over Pig iron for Steel smelters
- Global Iron ore prices sank 10 years low, which reduced cost of production for steelmakers, and led to offer Steel at minimum rates
- Lucrative Billet offers from nations like China & Russia that created shift in interest in the minds of Pig iron consumers
As a result of factors responsible, Indian Pig iron export market witnessed a lot of failures either due to low bids or no bids (lack of participation).
Indian Pig iron Export details
Among total Pig iron exports of around 0.6 MnT from the country this fiscal (FY15), MMTC managed to export around 0.3 MnT, followed by Sesa Sterlite which exported around 0.2 MnT and RINL with 0.06 MnT.
Talking about export destinations, India exported largely to South Korea, Thailand and Saudi Arabia. 
Global Pig iron as of Today, Snapshot
Afters witnessing a sharp fall of USD 80-90/MT (Q-o-Q), global Pig iron offers are currently resting at USD 245/MT FoB Black sea & USD 270-275/MT FoB Brazil. Whereas, export offers from India have touched USD 255-260/MT FoB India.
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