Indian Pig iron manufacturers have turned active in offering pig iron in global market after MMTC, India’s largest trading house concluded an export tender last week for 15,000 MT Pig iron at around USD 275/MT, FoB India.
According to few market sources, West India based Pig iron manufacturer is exploring opportunities and testing price levels in market for exports. As domestic demand is dull due to demonetization, they are looking forward for exports and hopefully they may conclude some deal in the coming time.
SAIL, one of the largest Pig iron manufacturers is also in negotiations with the parties to export few quantities of Pig iron.
Notably, the upsurge in global market, MMTC has also issued back-to-back another tender for minimum quantity of 15,000 MT Pig iron which will close on 02 Dec’16. The shipment is scheduled between 20 Dec-30’Dec’16.
Why Indian pig iron manufacturers exploring export opportunities?
1. Falling domestic demand due to demonetization: Demonetization has impacted domestic demand due to poor sales. Domestic sales remained poor due to liquidity crunch on demonetization of Indian currency. This enabled Pig iron manufacturers to look for export opportunities.
2. Higher global Pig iron market: Sudden upsurge in coking coal prices have led the global pig iron market to remain on higher side. CIS nations Pig iron export offer have crossed the USD 300/MT mark, FoB Black Sea which is positive sign for Indian Pig iron manufacturers.
3. Rupee depreciation: Depreciation of Indian rupee against US dollar is currently a positive sentiment for Indian Pig iron exporters. The value to dollar against rupee is good which have provided support to Indian exporters.
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