Pig iron manufacturers across major Indian market are in a wait-and-watch mode for Neelachal Ispat’s (NINL) price circular, which is expected to be declared this week. Listed as one of the largest Indian Pig iron manufacturer, NINL had raised its offers in the starting of this month.
NINL’s last offer for steel grade was fixed at INR 19,000/MT (ex-plant), with a discount of INR 400/MT on purchase of bulk quantity. However, buying was subdued at these levels.
Since last 15 days of this month, Indian Pig iron prices are almost stable, however, low demand has kept buyers out of the market.
Global market scenario
In case any tender will be issued in near term, Pig iron manufacturers expect high export prices, which will further support domestic prices. Offers in global market have gone up sharply in-line with higher scrap prices. Currently, offers are hovering in the range of USD 250-270/MT, FoB Black Sea and Brazil. However, there are no active tenders from Indian manufacturers but price expectation is around USD 250-260/MT, FoB Indian East Coast.
Current Pig iron offers
| Particulars | Currency | Prices | Remarks |
| Ex-Cuttack (NINL) | INR/MT | 19,000 | NINL’s price circular is going to expire on 19 Apr’16. New price circular is yet to float in this week. |
| Ex-Durgapur | INR/MT | 18,600 | Unsupportive billet buying led to decline in Pig iron offers by upto INR 300/MT W-o-W. |
| Ex-Hyderabad | INR/MT | 19,200 | Short supply and strong imported scrap offers have supported Pig iron prices. |
| Ex-Ludhiana | INR/MT | 24,000 | Prices rose over higher landed offers by primary Pig iron makers. |
| Ex-Raigarh | INR/MT | 20,200 | There are no buyers at this offer as most of the furnaces were closed due to power cut by Jindal. Pig iron manufacturers are seeking buyers. |
| Ex-Raipur | INR/MT | 20,200 | Raigarh sold Pig iron at INR 20,100-20,200/MT landed to Raipur. While, Jayaswal Neco offered at INR 20,200/MT (ex-plant). |
| Ex-Vizag | INR/MT | 17,300 | – |
| FoB India | USD/MT | 250 | – |
| FoB Brazil | USD/MT | 245 | – |
| FoB Russia | USD/MT | 255 | – |
Source: SteelMint Research
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