SteelMint learnt from market participants that Pig iron offers in Central & Eastern India declined further by INR 300-500/MT (USD 4-8) W-o-W, due to slump in steel prices and improved supply for the material.
The regular trade participants stated, “Inquiries are less on falling coking coal & steel prices, this has mounted pressure on producers to deal with reduced prices. Supply also improved by private producers in Eastern belt which is another major factor behind significant fall in pig iron prices,” they added.
The latest offers for Steel grade are evaluated at INR 28,200-28,400/MT ex-Durgapur, INR 29,400-29,600/MT ex-Raipur, INR 28,000-28,500/MT ex-Odisha & INR 28,000-28,300/MT ex-Vizag/Hyderabad. These offers fell by about INR 300-500/MT against last week’s assessment.
Trade Log
1. Raipur – Central India based suppliers have offered steel grade Pig iron at around INR 29,300-29,500/MT FoR & excluding GST.
2. Raigarh based manufacturers have been buying Steel grade pig iron from Odisha at INR 29,000-29,200/MT on FoR basis – Sources.
3. Neo Metaliks in Durgapur – West Bengal has kept offers unaltered and are assessed at INR 28,500/MT. The plant is also offering Foundry grade material at INR 31,500-31,600/MT. Both prices ex-plant & excluding GST.
4. Girdih based Atibir Industries have reported fresh deals at around INR 28,000/MT as against last week at INR 28,500/MT ex-plant.
5. Bokaro based Electro Steel which produces 25,000 tonnes of steel grade material has not offered any material for sale due low stock. Last week offers of the plant for steel grade Pig iron was at around INR 28,500/MT ex-plant.
6. As per close sources with Neelachal Ispat (NINL), the company is likely to resume operations by the end of Apr 2018. NINL’s blast furnace is on capital maintenance since December 2017.
7. Trade participants in North India – Ludhiana indicated further fall in pig iron prices due to declining prices in major markets of East India (Source markets). The latest offers for steel grade are hovering at around INR 30,500/MT and Foundry grade at INR 31,700-31,900/MT FoR and excluding 18% GST.
8. Coking coal offers continue to fall over weak demand globally and healthy availability. The latest offer for the Premium HCC is assessed at around USD 212/MT CNF India, fall around USD 15/MT, W-o-W.
Steel Grade Pig Iron Prices as on 28th Mar 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | Change | 1W | 1M |
| Ex-Bokaro | Steel Grade | 28,000 | 27,800 | 28,200 | – 400 | 28,433 | NA |
| Ex-Cuttack | Steel Grade | 28,400 | 28,300 | 28,500 | – 100 | 28,600 | 28,900 |
| Ex-Durgapur | Steel Grade | 28,300 | 28,200 | 28,400 | 0 | 28,467 | 29,500 |
| Ex-Giridih | Steel Grade | 28,000 | 27,800 | 28,200 | – 300 | 28,433 | 29,500 |
| Ex-Hyderabad | Steel Grade | 28,000 | 27,800 | 28,200 | 0 | 28,000 | 28,000 |
| Ex-Jharsuguda | Steel Grade | 28,500 | 28,400 | 28,600 | – 500 | 29,100 | 28,900 |
| Ex-Ludhiana | Steel Grade | 30,500 | 20,400 | 30,600 | – 300 | 31,033 | 29,850 |
| Ex-Raigarh | Steel Grade | 29,200 | 29,000 | 29,400 | – 300 | 29,933 | 29,550 |
| Ex-Raipur | Steel Grade | 29,500 | 29,400 | 29,600 | 0 | 29,967 | 29,850 |
| Ex-Vizag | Steel Grade | 28,300 | 28,100 | 28,500 | 0 | 28,300 | 27,300 |
Prices in INR/MT & excluding 18% GST
Source: SteelMint Research
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