Indian Pig iron exports in the month of Nov’16 remained nil due to higher domestic demand. However, in Oct’16, one bulk shipment of 18,000 MT Pig iron was exported by SAIL.
Indian Pig iron manufacturers were engaged in supplying Pig iron in the domestic due to high demand, which kept them away from exporting. Higher raw material cost has made them to offer their material in the domestic market for better realization.
In addition, after the demonetization of the Indian currency in the mid Nov’16, pig iron manufacturers resisted themselves from trading due to liquidity crunch. However, towards the end of Nov’16, one of the largest Indian trading house-MMTC has concluded an export deal of 15,000 MT Foundry grade Pig iron.
Indian Pig iron exports likely to increase in Dec’16
Indian Pig iron exports are likely to increase as exporters turned active in exports and recently concluded few export deals.
Indian Pig iron manufacturers and exporters are exploring opportunities to export Pig iron from India due to various factors. Declining domestic demand due to demonetization, higher global Pig iron prices as well as rupee depreciation has made Indian Pig iron exporters to look for exporters.
It is noted that the global pig iron prices are inflated due to rise in raw material (iron ore, coking coal and scrap prices), which also attracted Indian Pig iron exporters. Currently, export offers from Russia are at USD 285/MT, FOB Black Sea, which crossed USD 300/MT, FoB Black Sea 2 weeks back.
- MMTC- the largest trading house has issued a 3rd back-to-back export tender after concluded last two tender at modest prices. First, tender for 15,000 MT Pig iron concluded at USD 275-276/MT, FoB India and shipment was scheduled between 05-15 Dec’16. Another tender concluded around 280/MT, FoB India and shipment is scheduled between 20-30 Dec’16.
- Vizag Steel-one of the leading manufacturer of Pig iron has recently issued an export tender for 20,000 MT Pig iron (steel grade) to open on 14 Dec’16.
- SAIL-one of the largest Pig iron manufacturer also in negotiation with parties to export few quantities of Pig iron
- West India based Pig iron exporters’ also testing market and export potential for exports.
Exports of Pig iron from India in FY17 (till Nov’16)
| Date | Shipper | Vessel name | Quantity (MT) | Loading Port | Destination Country |
| 19 May’16 | MMTC | BBC Iceland | 3,200 | Paradip | Chittagong |
| 26 Jul’16 | Vedanta | Uni Challenge | 20,000 | Mormugao | Chittagong |
| 23 Aug’16 | Vedanta | Lord Nelson | 21,000 | Mormugao | Thailand |
| 24 Aug’16 | MMTC | Uni Challenge | 15,750 | Paradip | Bangladesh |
| 28 Aug’16 | SAIL | Asia Energy | 18,000 | Haldia | Bangladesh |
| 31 Oct’16 | SAIL | Newlead Albion | 18,000 | Haldia | Thailand |
Source: SteelMint Research
Provisional Data
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