Indian Pig Iron Market Scenario – Week 48

Steel Grade Pig iron

Private manufacturers have reduced offers by INR 500-1,000/MT after NINL, India’s largest merchant Pig iron manufacturer reduced prices by INR 1,200/MT last week. Falling Pig iron & Scrap prices to an extent of USD 30-40/MT M-o-M in the global market have weighed upon domestic prices. Current offers for Steel grade Pig iron are in the range of INR 21,000-23,000/MT (USD 340-370/MT) ex-works.

Monnet Ispat have reduced their offers to INR 22,300-22,400/MT ex-Raigarh, which was earlier at INR 23,100/MT, according to a Billet manufacturer, who received offer.

Another Ingot manufacturer based in Raipur confirmed to have bought some quantities at INR 23,000-23,100/MT. Whereas, manufacturers at Durgapur have raised Pig iron offers by INR 200-300/MT to around INR 21,700-22,000/MT (ex-Plant) owing to limited stocks offered in the local market. Currently, material of some major units is being raked and sold in northern India.

Pig iron manufacturers mentioned that unavailability of Iron ore and low demand hit their margins significantly. If situation continues to remain same, most of the merchant plant will shutdown.

Foundry Grade Pig iron

Tata Metaliks continues to offer Foundry grade Pig iron at INR 28,000/MT ex-Tatanagar. Whereas, Sesa is offering the material at around INR 32,000/MT (delivered to Karnataka).

Current Pig Iron Offers

* last export finalized on September,2014 at USD 395/MT FoB East Coast of India