Domestic pig iron prices declined again specially in Eastern India by INR 500-1,000/MT (USD 7-15) following the lull trades and fall in Coking coal prices.
Notably, global coking coal price which rose during last month at USD 320/MT have now reported at USD 230-232/MT FoB Australia; decline approx USD 100/MT. Prices had increased amid cyclone which had hit Australian coast , disrupting the supply.
Current offers for Steel grade material in East India, Durgapur & Giridih are assessed at INR 22,500-23,000/MT (USD 348-355) which was at INR 23,000-23,500/MT in the start of running week.
A producer in East India, added ‘’we are reluctant to cut prices as there is sharp fall in domestic billet & global coking coal prices which made buyers cautious and are expecting further corrections to take position.”
In context to price movements in other key markets, it fell by INR 200-500/MT in Central, Raipur & South India, Hyderabad. The fresh offers in Raipur are evaluated at INR 24,800-25,000/MT & in Hyderabad at INR 24,000/MT.
The trade participants here reported, there is limited sales at this offer prices hence anticipations are higher about price slump in days to come.
Export Demand
Global pig iron prices remain more or less stable after high volatility in seaborne scrap prices. Last week, market was very silent on the news that Chinese scrap suppliers are exploring export market. But this week markets opened on a positive note with Turkish scrap buyers returning to market with higher bids.
Last tender by one of Indian state owned trading firm was cancelled due to lower bids. Company had re-issued the tender and is closing on 13th of May. Indian pig iron export prices are assessed in the range of USD 300-310/MT FOB.
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