Domestic Pig iron offers may fall soon in line with falling steel prices, according to the trade sources.
Currently, trades are sluggish due to higher Pig iron offers and falling billet prices. However, rising coking coal prices remain a major concern for the Pig iron manufacturers.
Presently, Pig iron prices is already under pressure. Current offers for steel grade material are at INR 20,500-21,000/MT ex-Durgapur, INR 22,000-22,300/MT ex-Raipur, INR 23,000/MT FoR Hyderabad, INR 20,500/MT ex-Goa & INR 26,000/MT FoR Ludhiana.
Reputed Steel grade manufacturers in central & east India reported that currently they only able to sell less than 50-60% material than the available quantity with the manufacturers.
Comments in major markets
1. An official from Tata Steel Indicated, At current prices for ferroshots at INR 20,500/MT & Poled iron at INR 19,000/MT, bookings were not healthy, prices need to revise for bulk bookings.
2. Similar comments being received in central India where Jayaswal Neco Industries Limited and Jindal Steels offering their material in the range of INR 22,300-22,500/MT. While, buying interest have seen at INR 21,500-22,000/MT. Manufacturers added-huge stock available to the traders; willing for bulk trade.
3. Atibir Industries in Jharkhand has reduced their prices by INR 400/MT to INR 21,000/MT ex-plant. According to an official, buyers are agreed purchase material at the max price of INR 20,500/MT.
4. Trade sources in Durgapur have mentioned, steel grade offers by Neo Metaliks & Kajaria Iron are at INR 21,000/MT; no buying have reported at this prices.
5. Offers slump in Ludhiana approximately by INR 2,000/MT in Oct’16. A trader quoted “Supply has been improved for both steel & foundry grade Pig iron by east & west India based manufacturers namely, Kajaria Iron, Neelachal Ispat, Vedanta Resources and The Indian Iron & Steel Company (IISCO)”.
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