Pig iron offers in domestic market remain stable amid improving Steel demand in Indian market.
Pig iron currently is trading in the range of INR 18,000-20,000/MT on ex-plant basis. Improving Steel prices by INR 1,000-1,500/MT has given some hope to market.
Primary manufacturers like RINL & IISCO (SAIL) have kept offers unchanged for April deliveries at INR 19,300/MT ex-Vizag & INR 18,200-18,700/MT ex-Burnpur. Similarly, other manufacturers based in Eastern region prefer to hold offers.
Although, few manufacturers in Raipur & Raigarh are yet to open prices, market anticipates rise of INR 200-300/MT in offers. Previous offers at Raigarh & Raipur were at INR 19,400-19,500/MT & INR 20,000/MT, respectively on ex-plants.
NINL & RSP (SAIL) are also yet to announce their offers. An export tender of 40,000 MT Pig iron of NINL (MMTC) expires today. Result of the tender may further give direction to the market and help MMTC in domestic pricing.
But most importantly, operations of Iron ore mines are about to start, which may increase supply in the market, leading to further price cuts in Iron prices. It would be interesting to see if prices of Steel rise on seasonal basis, how long would it sustain under such pressure?
Pig iron prices as on 6 Apr’15
| Particular | Price (Basic) | W-O-W |
| Cuttack | 18,000-18,100 | 0 |
| Durgapur | 19,200 | 0 |
| Giridih | 19,000 | 0 |
| Ludhiana | 24,500 | 0 |
| Raigarh | 19,400-19,500 | 0 |
| Raipur | 20,000 | 0 |
| Vizag | 19,300 | 0 |
Basic Price in INR/MT
Source: SteelMint Research
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