Pig iron prices across major Indian markets reported uptick of INR 500-1,000/MT (USD 8-15) in Dec’16, M-o-M. Better demand from the both Indian domestic & global market as well limited suppliers for the material have strengthened pig iron prices.
During the month a large number of manufacturers in East India (consider as big hub for pig iron supply in the open market) have reported fall in productions due to high input cost and low selling prices. Thus, the manufacturers in the region halted operations for a time being.
Analyzing the raw materials price movements, Coking coal prices fell by USD 50/MT to USD 260-265/MT CFR India, which was above the level of USD 310/MT during Nov’16. Moreover, in same time period Indian Iron ore prices were reported unaltered.
On monthly average basis, Pig iron offers in Dec’16 were recorded in the range of INR 20,400-21,800/MT (USD 300-320). While during Nov’16, it was traded at INR 20,000-22,100/MT (US$ 294-325/MT) ex-works.
Highlights of the month
1. RSP’s bid price for Steel grade material have increased to INR 20,600/MT in Dec’16.
2. NINL hiked prices for both Steel & Foundry grade by INR 1,000/MT (USD 15); post hike, offers were assessed at INR 21,500/MT for Steel grade (N1) & INR 22,000/MT for Foundry (N2). During the month, the plant has also successfully concluded 4 tenders, which the total quantity was approximately at 1,00,000 MT and the deal price was in the range of USD 275-292/MT FOB East Coast, India.
3. Vedanta Resource and Gerdau Steels have increased their prices by INR 1,000/MT to INR 22,500/MT FOR Hyderabad, from earlier (in Nov’16) at INR 21,200-21,500/MT.
4. South India based, Vizag Steel (RINL) has floated a single tender to export 20,000 MT steel grade material, which got canceled due to higher bid price expectations. However, to take better output, the company has increased its domestic offers by INR 500/MT to INR 22,400/MT during mid of Dec’16.
Leave a Reply