Indian pig iron manufacturers have increased prices due to sharp rise in global coking coal prices.
Coking Coal offers have jumped to USD 241/MT FoB Australia as exports shrunk after most producers in Australia, including the big ones—BHP Billiton and Glencore, declaring force majeure on coal supplies.
The supplies are hit due to the damaged rail system, caused by the Debbie cyclone. It is estimated that the huge landslides on the railway tracks of the Goonyella rail line will take at least five weeks to be cleared.
Looking to this things the manufacturers in East India, Durgapur have increased prices and offers steel grade material at INR 24,000/MT which was traded at INR 22,800-23,000/MT a day ago.
Similarly, Tata Metaliks also the largest producer for foundry grade material have raised prices by INR 500/MT to INR 27,000/MT ex-Kharagapur, West Bengal.
It seems that, the manufacturers in rest part of India likely to follow suit and surge their prices soon.
Indian Pig Iron export
Rising coking coal prices will have an impact on Indian pig iron exports as well. It is expected that mills will raise export offers. Last deal concluded from India through a tender was about USD 315-320/MT FOB India for steel grade.
Note: Indian domestic prices are excluding ED & VAT/CST.
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