Indian Pig iron prices may come under pressure on account of increased supplies from big manufacturers like Tata, SAIL, Jindal, Monnet and NINL. Participants confirmed that SAIL (IISCO) has started offering Pig iron in domestic market, for which sales were closed for over a month.
Similarly, Tata Steel is consistently supplying granulated Pig iron from its new Kalinganagar plant. Steel makers in central India mentioned that Jindal Steel & Power and Monnet Ispat (based in Raigarh, Chattisgarh) have also increased their supplies to domestic market.
Decline in Indian billet prices
Indian billet prices corrected by upto INR 1,500/MT in last ten days on account of weak demand. Besides, current conversion gap between Pig iron and billet has narrowed down to INR 1,000-2,000/MT, which ideally should be around INR 4,000/MT. Steel makers have reduced their purchases of Pig iron and feeding more Calcined Petroleum Coke (CPC) and sponge iron.
Fall in global prices
Falling global prices may keep Indian Pig iron prices under pressure. Manufacturers were getting better export realizations when prices were high. Since prices have came down in global market, Indian players have to focus more on domestic market. Recently, a tender of 20,000 MT Pig iron issued by SAIL failed to receive bids. Another tender of 40,000 MT floated by MMTC is lined up for 17 May’16.
Highlights
1. Jindal Steel is offering Pig iron at INR 20,500/MT ex-Raigarh (Chattisgarh).
2. Monnet Ispat traded Pig iron landed to Raipur at INR 21,000/MT, sources reported. While, Jayaswal Neco, a Raipur based prime grade Pig iron maker, is offering material at INR 21,200/MT ex-plant.
3. Durgapur based Jai Balaji Industries, Neo Metaliks and Kajaria Iron heard to be offering steel grade Pig iron at INR 18,900-19,000/MT against INR 19,200-19,500/MT last week.
4. A Guwahati based buyer reported that he is getting offers for Pig iron from Giridih at INR 18,500/MT.
5. IISCO (SAIL’s burnpur unit), offers Pig iron at INR 18,100-18,300/MT and heard to have sold 7-8 rakes to north India and local buyers.
6. NINL’s last offer was recorded at INR 19,200/MT, which is going to expire on 17 May’16.
7. Odisha based smelters mentioned that they are receiving offers from Tata Steel’s for granulated Pig iron at INR 18,600/MT and pooled iron at INR 17,000/MT ex-plant (offers for bulk purchase only).
8. Sesa goa is offering steel grade pig iron at INR 22,200/MT landed to Hyderabad (Including CST & freight). While, Sathavahana Ispat is offering material on same conditions is at INR 21,700/MT, as per trader based in Hyderabad.
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