Post continuous price rise since Jan’16, Indian steel grade Pig iron prices now started to fall from this month onwards owing to improved supply by big manufacturers.
SteelMint had earlier forecasted that Pig iron offers in Indian domestic market will come under pressure due to increased supply by primary/secondary players and weaken global & domestic market sentiments.
Pig iron offers by secondary producers have reduced by upto INR 600/MT in a week’s time and upto INR 1,200/MT in last 14 days. Current offers for steel grade are assessed at INR 20,800/MT ex-Raipur (central India), INR 18,300-18,500/MT ex-Durgapur (east India), INR 24,000/MT Ludhiana (north India) and INR 21,200-21,500/MT Hyderabad (south India).
There are speculations in the market that foundry grade prices may also move down due to recent improved supply for both the grades. Neo Metaliks, a Durgapur based merchant Pig iron seller with installed capacity of 0.18 MnT pa, has started to produce foundry grade material since a week ago. The company had been producing steel grade material since a long time. Few Ludhiana based traders also reported that supply of foundry grade from Tata Metaliks has also improved in this month.
Highlights
1. Jayaswal Neco Industries reduced steel grade Pig iron offers by INR 200/MT to INR 20,800/MT ex-plant, Raipur.
2. Jindal Steel in Raigarh has kept offers stable at INR 20,500/MT ex-plant.
3. Neo Meataliks offered steel grade material at INR 18,500-18,700/MT and foundry grade at INR 22,800/MT ex-plant, Durgapur.
4. Jai Balaji Industries based in Durgapur sold steel grade Pig iron at around INR 18,300/MT ex-plant, a bulk purchaser reported.
5. Hyderabad based manufacturers reported, Pig iron is mostly coming from Odisha at around INR 21,200/MT landed to plant (including freight & CST). Whereas, they are also getting offers from Seso Goa & Santwana Steel at around INR 21,700-22,200/MT on the same conditions.
6. IISCO & Neo Metaliks offering steel grade Pig iron in Ludhiana (landed) at INR 24,000-24,200/MT.
Steel grade Pig iron prices as on 19 May’16
| Markets | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | 19,000 | 200 | – | – |
| Ex-Durgapur | 18,400 | 450 | 200 | 900 |
| Ex-Giridih | 18,300 | 200 | 400 | 2,300 |
| Ex-Hyderabad # | 21,400 | 300 | 1,900 | 3,400 |
| Ex-Ludhiana # | 24,000 | 200 | 225 | 1,800 |
| Ex-Raigarh | 20,400 | 50 | 225 | 2,100 |
| Ex-Raipur | 20,800 | 300 | 600 | 2,200 |
| Ex-Rourkela | 19,400 | 600 | – | 2,800 |
Prices in INR/MT
#Landed to plant rest all ex-plant
Source: SteelMint Research
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