Indian pig iron prices find stability post rapid price rise in previous month’s. Falling steel prices have slowdown pig iron trades, according to manufacturers.
Currently, domestic pig iron trades range between INR 21,000-23,000/MT (USD 310-340) ex-works. While, in global market offers are prevailing at USD 235/MT FOB Russia.
However, in Sep’16 pig iron (domestic market) were traded at INR 17,500-20,200/MT (USD 260-300) & in Aug’16 at INR 15,700-18,400/MT (USD 235-275); considering monthly average prices.
Indian pig iron prices in the previous month’s were sharply high due to rise in coking coal prices. However, in the present scenario falling steel prices couldn’t support pig iron demand. Currently, offers are prevailing for Coking coal at USD 220-225/MT & Shredded scrap at USD 230-235, CFR India.
Industry participants reported that Indian smelters are preferring CPC or scrap over expensive pig iron and they are in hope, if the domestic steel prices fall continuously, pig iron price will come under pressure despite of high coking coal prices.
Trade Updates
1. Raipur based Jayaswal Neco Industries is offering pig iron at INR 22,800-23,000/MT; no major buying seen at these offers. Traders offers are heard for outstation material at INR 22,300-22,500/MT FOR.
2. Jindal Steel’s offers are firm at INR 22,400-22,500/MT ex-Raigarh. An official mentioned limited buying at current offers.
3. KIC (Kajaria Iron Company) in Durgapur is offering steel grade material at INR 21,000/MT & foundry grade at INR 24,500/MT, according to sources.
4. RSP has scheduled fresh tender for steel grade material on 20th Oct’16. The plant’s last tender was concluded in the range of INR 20,500-20,900/MT ex-plant.
5. Offer remains firm by Vedanta Resources & Sathavahana Ispat Limited at INR 23,000/MT FOR Hyderabad.
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