Pig iron manufacturers in domestic market have cut their prices by INR 800/MT (USD 12) in Nov’16 M-o-M. Key raw material like coking coal prices surge nearly USD 50/MT during same time period.
Despite sharp increase in coking coal prices, Indian pig iron prices registered fall of INR 100-600/MT in East & South India & INR 600-800/MT in Central India; considered as key suppliers for the material in domestic market. As per market participant the regions are producing 70% material of the total production in India.
On monthly average basis, Pig iron offers in Nov’16 were recorded in the range of INR 20,800-21,500/MT (USD 305-315). While during Oct’16, it was traded at INR 21,000-22,100/MT (US$ 310-325/MT) ex-works.
Prices plunged as Induction furnace owners cut purchases due to reduced production of Ingot/billet. Also, the manufacturers highly melts low cost substitute products like Scrap & CPC (Calcined petroleum coke).
Highlights of the month
1. Tata Steel’s ferroshots offers fell by INR 500/MT to INR 19,500-19,700/MT in Nov’16.
2. RSP’s bid price for steel grade material have fallen to INR 18,600-19,200/MT in Nov’16. During the month there was two tenders of around 4,400 MT & 4,600 MT; both the tenders have received good response. In Oct’16, the bid was for same grade material was recorded at INR 20,000-20,200/MT.
4. According to the trade sources, Vedanta Resource reduced its steel grade offers to INR 21,500-21,700/MT FOR Hyderabad, from earlier (in Oct’16) at INR 22,200-22,500/MT.
5. NINL, has resumed to export material in Nov’16, a export tender is being concluded for 15,000 MT at the price of USD 275/MT (INR 18,700/MT) FOB. The company’s domestic offer was in the range of INR 20,500-21,000/MT.
6. Vizag Steel (RINL) has increased its domestic offers by INR 200/MT to INR 21,500/MT in Nov’16. Moreover for Dec’16 the plant has kept prices unaltered at INR 21,500/MT ex-Vizag, South India.
Pig Iron Monthly Average Prices for Steel Grade
| Month | Durgapur | M-o-M | Raipur | M-o-M | Cuttack | M-o-M | Hyderabad | M-o-M |
| Jan’16 | 16,200 | + 900 | 17,500 | + 1,250 | 16,150 | + 950 | 16,650 | + 150 |
| Feb’16 | 17,150 | + 950 | 18,600 | + 1,100 | 16,750 | + 600 | 17,250 | + 600 |
| Mar’16 | 18,550 | + 1,400 | 19,700 | + 1,100 | 17,700 | + 950 | 18,000 | + 750 |
| Apr’16 | 18,800 | + 250 | 20,400 | + 700 | 18,900 | + 1,200 | 19,050 | + 1,050 |
| May’16 | 18,700 | – 100 | 20,950 | + 550 | 19,150 | + 250 | 21,350 | + 2,300 |
| Jun’16 | 17,450 | – 1,250 | 19,600 | – 1,350 | 18,050 | – 1,100 | 19,600 | – 1,750 |
| Jul’16 | 16,800 | – 650 | 17,850 | – 1,750 | 16,850 | – 1,200 | 18,250 | – 1,350 |
| Aug’16 | 16,600 | – 200 | 17,250 | – 600 | 16,100 | – 750 | 18,450 | + 200 |
| Sep’16 | 19,600 | + 3,000 | 20,200 | + 2,950 | 18,650 | + 2,550 | 20,100 | + 1,650 |
| Oct’16 | 20,800 | + 1,200 | 22,050 | + 1,850 | 21,150 | + 2,500 | 22,500 | + 2,400 |
| Nov’16 | 20,800 | 0 | 21,300 | – 750 | 21,150 | 0 | 22,100 | – 400 |
Basic prices in INR/MT
Sources: SteelMint Research
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