Indian Pig Iron Prices Increase Further on Supply Crunch

Private pig iron producers in Central and East India have further raised their prices in line with shortage of material and surge in Billet prices.

A shortage of Pig iron is prevailing in major markets, as few of the major producers have halted their merchant sales since more than a week. Another large producer of Steel grade – Neelachal Ispat (NINL) has already stopped operations for more than a quarter due to blast furnace maintenance work which is expected to get completed by Mar-end.

According to SteelMint assessment, prices in current week increased around INR 500/MT (USD 8) in Durgapur, INR 800-1,000/MT (USD 12-16) in Odisha – East India and INR 800-1,000/MT(USD 12-16) in Raipur, Central India. The producers reported mix response at this offer prices.

The latest offers for Steel grade are evaluated at INR 28,800-29,000/MT ex-Durgapur, INR 29,300-29,500/MT ex-Raipur, INR 28,300-28,500/MT ex-Odisha & INR 27,500-28,000/MT ex-Vizag/Hyderabad.

Trade Log

1. Raipur – Central India based suppliers are offering steel grade pig iron in the range of INR 29,300-29,500/MT FoR.

2. Jindal Steel offers granulated Pig iron (panther shots) at INR 27,500/MT and Pooled iron at INR 26,500/MT, ex-Angul, Odisha.

3. Tata Metaliks has offered foundry grade pig iron at around INR 31,600/MT, ex-Kharagpur, East India.

4. Vedanta Resources (earlier known as Sesa Goa Ltd) has raised foundry grade offers to INR 32,500/MT ex-plant, Goa & excluding GST.

5. South India based Gerdau Steel has offered steel grade material at INR 28,000/MT FOR Hyderabad. However, the same grade material is being offered by Vizag Steels (RINL) at INR 27,500/MT ex-plant, Vizag.

6. Durgapur based Neo Metalics has concluded small deals for steel grade Pig iron at around INR 28,800/MT ex-plant. And the current offers for pig iron are at INR 29,000/MT ex-plant.

7. As per the sources, Bhushan Power & Steel offered Pig iron steel grade at INR 28,400-28,500/MT ex-Jharsugda, Odisha.

8. Coking coal prices continue to rise as sellers foresee continuance of strong demand. Offers for the Premium HCC have gone up by around USD 4.75/MT, over the week-ago offers, to around USD 232.25/MT FoB Australia.