Pig iron manufacturers across India have indicated a price rise of INR 200-500/MT in Steel grade and INR 500-1,000/MT in foundry grade, for Jan 2014.

On what Grounds will Prices Gain Strength?

“Our cost of producing Pig iron has gone up by INR 600-2,000/MT because of expensive Iron ore in Karnataka (by 60-70%) and Odisha.

We are using 70% sinter and 30% lumps as Blast Furnace burden, which might change to 60:40 soon; miners are charging high for fines as mismatch in demand (high) and supply (low) exists.

 

INR is at 62 against USD and importing Coke at USD 274 CFR India is still costly. Logistics cost has also increased by 30-40%.

 

Traditionally, its a good time for Pig iron demand and is expected to continue up to May-June. We were waiting for an opportunity to raise offers.

 

Ingot is being offered at higher prices and Steel demand (finish long) has improved with pick up in construction activities,” remarked some of the Pig iron producers.

Impact of NINL’s Prices on Secondary Pig Iron Industry?

“Pig iron industry in India has now become an unregulated one, with difficulties in predicting price fluctuations.

Secondary Pig iron manufacturers are dictating their own price trends rather than depending on NINL’s prices, as its consistency in supply is missing. NINL had raised offers by INR 500/MT on 17 Dec, 2013.

Buyers are willing to pay more but have a secured source of supply; few more small players have started offering Pig iron.

Pig iron industry has been struggling to survive and bearing losses (low margins) for a couple of years now. Hence, manufacturers are ready to get rid of inventory at lower margins and produce as per requirement,” secondary Pig iron manufacturers told SteelMint.

Pig Iron Manufacturers maintain Price Levels