Indian bulk pig iron exports increased by about 230% in calendar year 2017, according to data maintained by SteelMint based on vessel line up.
Indian bulk pig iron exports were recorded at 575,450 MT during Jan-Dec 2017, which was 174,240 MT in same period 2016. Thailand remained the largest importer of Indian pig iron in CY16 & CY17, contributing around 40.64% (0.23 MnT) & 58.28% (0.10 MnT), respectively. Other major importers CY17 included United States (18.23%), Taiwan (9.80%) and Italy (7.97%).
Further, India’s largest pig iron exporter was MMTC (220,000 MT) followed by Vedanta (210,000 MT) and RINL (70,000 MT). While, in 2016 MMTC exported around 100,000 MT pig iron while Vedanta and SAIL each exported 40,000 MT.
Indian pig iron exports have gained momentum due to consistent rise in global scrap, coal and billet prices amid absence of Chinese cargoes. According to world steel association, crude steel production has increased across the world in 2017, which have increased demand for scrap and pig iron.
In 2017, India produced about 9.50 million tonnes of saleable pig iron annually. While in CY 2016 the country’s saleable production was reported at 9.44 MnT against 9.69 MnT in CY 2015.
Trade Updates
1. The global export offers for basic grade Pig Iron are currently at USD 355-360/MT FoB India, USD 360-365/MT FoB Russia and USD 370-390/MT CNF Italy.
2. Vedanta Resources, a prominent foundry grade pig iron manufacturer in India, has raised prices by INR 1,000/MT (4%) for Jan’18 deliveries.
3. Bulk Pig Iron Exports by Vedanta Resources for CY16 was around at 40,000 MT and for FY 2017 it was about 210,000 MT, as per SteelMint assessment.
4. SAIL’s IISCO has raised steel grade pig iron prices for Jan’18 and the latest offers at INR 26,500/MT against last month of INR 24,300-24,500/MT, ex-plant & excluding GST.
5. Tata Metaliks also raised its foundry grade pig iron prices by INR 1,200/MT for Jan’18. The company’s offer are reported at INR 30,200/MT ex-Kharagapur plant.
6. Indian pig iron prices are expected to increase further on high raw material cost amid strong demand globally.
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