After significant price surge in Dec’17, Pig iron offers have stabilized in January 2018 following moderate demand by Indian steel producers. The private producers claimed that uncertainty in billet market has resulted in subdued demand for pig iron.
According to SteelMint assessment the prices have been fluctuating by around INR 500/MT and current offers stand at INR 28,300-28,700/MT ex-Raipur, INR 27,000-27,500/MT ex-Rourkela, INR 26,400-26,600/MT ex-Durgapur, INR 29,800-30,200/MT FoR Ludhiana and INR 27,000-27,500/MT FoR Hyderabad. The prices are for steel grade material and are excluding 18% GST.
Market participants mentioned that, there is less scope for further price surge in pig iron. A marginal correction in prices can also be expected as Neelachal Ispat (NINL) would soon resume operations which have remain halted since Nov’17 due to blast furnace capital maintenance. Also, slump in coking coal prices is another major factor which indicates price fall in pig iron.
NINL, is India’s largest steel grade pig iron producer which produced about 520,000 MT pig iron annually. The company has installed capacity of 690,000 MT per annum.
Trade Log
1. Jindal Steel offers granulated Pig iron (panther shots) at INR 27,000/MT and Pooled iron at INR 26,000/MT, ex-Angul, Odisha.
2. Neelachal Ispat opened domestic offer which was valid till 17 Jan’18. The offers were at INR 28,000/MT for Steel (N1) grade and INR 28,500/MT for foundry (N2) grade material, ex-Cuttack, Odisha. According to trade sources, the total quantity has been purchased by local furnaces.
3. Tata Metaliks has again increased foundry grade pig iron prices by INR 300/MT in last week. The latest offers are hovering at INR 30,500/MT, ex-Kharagpur, East India.
4. Bokaro based Electro Steel which produces steel grade material about 25,000 monthly basis, offers are stand at INR 26,500-26,600/MT ex-plant & INR 27,000/MT, FoR Durgapur.
5. Raipur – Central India based suppliers are offering steel grade pig iron in the range of INR 28,300-28,700/MT FoR.
6. Durgapur based Neo Metalics has concluded small deals for steel grade Pig iron at around INR 26,500-26,700/MT ex-plant.
7. SAIL’s IISCO has raised steel grade pig iron prices on 18th Jan’18 by INR 500/MT to INR 27,000/MT ex-Burnpur, East India. In the last price of INR 26,500/MT, the company has sold out 2 rakes quantity which dispatches are in pipeline.
8. Bhushan Power & Steel is offering Pig iron steel grade at INR 27,500/MT against last offer of INR 27,700/MT ex-Jharsugda, Odisha.
9. Global coking coal prices slumped this week due to decline in demand owing to expected price corrections by Chinese buyers. In a week’s time, the offers came down by USD 22-24/MT to USD 235-237/MT FoB Australia for Premium HCC.
10. SteelMint’s pig iron export price assessment stood at USD 385-390/MT FoB India, USD 365-370/MT FoB Brazil and USD 360-370/MT FoB Black sea.
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