Indian pig iron offers moves up further on sharp price hike by country’s largest pig iron manufacturers namely NINL & RINL.
Recently, Neelachal Ispat Nigal Ltd (NINL) & Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL) have increased it’s pig iron prices by INR 1,000/MT and INR 500/MT respectively for Apr’16.
Reasons for continuous rise in pig iron offers are:
1. Indian Pig iron prices move up on low supplies and rising prices in global market. NINL and RINL, state owned and largest suppliers of pig iron are running short of deliveries due to increase in captive consumption.
2. SAIL , which was actively supplying pig iron in domestic market is out of the market due to increase in self consumption.
3. TATA introduced granulated Pig iron in the market from its Kalinganagar Plant, which is supposed to give a better recovery as compared to Pig iron. However it is not confirmed that what would be the total quantity, that would be offered regularly.
4. Globally Pig iron prices rose sharply in line with scrap prices. Prices have reached about USD 230-240 FOB Black Sea and Brazil. There is no active tender from Indian suppliers, but looking at global trend, Indian export prices sjould not be less than 235/MT FOB India East coast. Last tender of 30,000 MT pig iron by MMTC was concluded at USD 190/MT FOB Black Sea in the month of December.
Steel grade Pig iron offers as on 08 Apr’16
| Particular/Delivery | Currency | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack(NINL) | INR/MT | 19,000 | 1,000 | 1,350 | 2,900 |
| Ex-Durgapur | INR/MT | 18,900 | 300 | 800 | 2,700 |
| Ex-Hyderabad | INR/MT | 18,700 | 700 | 700 | 2,000 |
| Ex-Ludhiana | INR/MT | 23,700 | 700 | 1,200 | 2,700 |
| Ex-Raigarh | INR/MT | 20,200 | 500 | 900 | 3,200 |
| Ex-Raipur | INR/MT | 20,600 | 350 | 1,400 | 3,000 |
| Ex-Vizag | INR/MT | 17,300 | 500 | 500 | 1,100 |
| FOB India | USD/MT | 230-240 | 30-40 | 40-50 | 40-50 |
| FOB Brazil | USD/MT | 230 | 20 | 40 | 45 |
| FOB Russia | USD/MT | 240 | 5 | 25 | 65 |
Source: SteelMint Research
Leave a Reply