Indian Pig Iron Market Under Pressure on Falling Billet Prices

Price competitiveness among private pig iron producers has increased to improve buying inquiries. Furnace owners have turned cautious over falling billet prices to reduce future bookings for Pig iron.

In addition, the participants stated that as price gap between pig iron & Ingot/Billet has minimized, the most of furnaces are reducing pig iron consumption due to comparatively lower cost of scrap & sponge iron.

In Raipur, Central region the latest offers for steel grade Pig iron stood at INR 27,000-27,200/MT, Scrap (end cutting) at INR 24,000-24,500/MT & Sponge P-DRI (FeM 80) at INR 16,100-16,200/MT; ex-plant & excluding 18% GST.

As per standalone mills in central & eastern regions, in order to reduce input cost, sponge iron proportion has been raised from earlier 80% to current 85% and in same line pig iron mixture reduced from 10% to 5% current, while scrap proportion has remained on same range.

Hence this has slightly lowered pig iron demand in domestic market along with falling Billet prices and ultimately pig iron prices gradually come down by INR 1,200-1,500/MT (USD 17-22) in Jun’19.

— Jindal Steel in Raigarh, Central India is offering steel grade pig iron at INR 26,800-27,000/MT ex-plant, while offers through the traders end learned at INR 27,200/MT on FoR basis.

— Similarly in Raipur where offers came down to INR 27,000-27,200/MT FoR, than the last week at near to INR 27,300-27,500/MT, FoR.

— Durgapur based Neo Metaliks has significant cuts steel grade pig iron prices and currently offering at INR 26,800-27,000/MT as against beginning of last week at INR 27,300-27,500/MT ex-plant.

— Jharkhand, Bokaro based Electrosteels Ltd has reduced prices to INR 26,500/MT ex-plant, equivalent to INR 27,000/MT FoR Durgapur.

— Following the trend, Atibir Industries one of the major merchant supplier in Jharkhand has cut prices by INR 500/MT to INR 26,500/MT ex-plant. For outside buyers few deals learned at INR 27,000/MT FoR Durgapur.

— Mesco Steels in Jajpur, Odisha reported limited inquiries at the offers of steel grade pig iron at INR 26,200-26,300/MT ex-plant.

— TATA Metaliks (TML) has reduced foundry pig iron prices by INR 800/MT (USD 12) to INR 31,700/MT (USD 457), which was earlier traded at INR 32,500/MT (USD 432), ex-plant, Kharagpur, eastern India.