In the ongoing week, private Pig iron manufacturers in Central & South regions have maintain offers firm. However, in East India-Durgapur, the offers marked marginal fall by INR 200-300/MT.
Market participants are waiting for NINL’s (Neelachal Ispat Nigam Ltd) price circular, which is due on 1st September 2017 for further direction. NINL is India’s largest merchant steel grade pig iron manufacturer. NINL had increased its prices by INR 1,000-1,250 /MT in last circular, which was notified on 18 Aug’17, Current offers are at INR 24,000-24,250/MT (Ex-Mill).
Offers for domestic steel grade pig iron (Si upto 1.5%) are currently hovering at INR 24,000-25,200/MT (USD 375-394) ex-works & excluding of GST at 18%. Where as export offers are evaluated at USD 355-365/MT FOB India.
The pig iron producers mention that, ” domestic demand is weak but rising coking coal and met coke prices are a cause of worry for manufacturers. “
Most of the manufacturers do not see scope of prices going down, but at the same time upside is limited.
Trade Log:
1. Latest offers in Central India – Raipur are reported at around INR 25,000-25,300/MT against last week assessment of INR 25,000/MT. Induction furnaces are procuring substitute products like CI molds, Scrap & CPC, which is cheaper by Rs 1,000-1,500/MT
2. Jindal Steel is offering – Granulated Pig iron at INR 23,300/MT & Pooled iron at INR 22,300/MT from its new Angul, Odisha plant on ex-works basis.
3. Durgapur based Neo Metaliks reduced offers – Steel grade available at INR 24,500/MT & Foundry grade pig iron at INR 27,000-27,200/MT (Ex-Mill).
4. RSP’s (Rourkela Steel Plant) last tender for 4,800 MT Steel grade pig iron failed to get response due to higher base price, which was set at Rs 24,000/t (Ex-Mill).
5. According to trade participants, offers for steel grade material by SAIL’s DSP (Durgapur Steel plant) & IISCO are at around INR 23,500-23,700/MT ex-plant.
6. Traders in Ludhiana, North India, have mentioned that prices have corrected by INR 500/MT on subdued demand from foundries and improved supply. Offers for Steel grade are at INR 26,500-26,700/MT and foundry grade at INR 28,500-29,000/MT; including local freight & excluding GST at 18%.
7. South India – Prices remain firm and are assessed at INR 25,500/MT FoR Hyderabad.
8. MMTC, India’s largest and state owned trading house on behalf of NINL, has extended the due date for its 30,000 MT non-alloy Pig Iron export tender from 1st Sep to 08 Sept’17.
9. SteelMint pig iron export assessment at USD 355-365/Mt FOB India.
Steel grade Pig iron reference prices as on 31 Aug 2017
| Particular/Delivery | Taxes | Prices | 1 Week back | 1 Month back |
| Ex-Cuttack | Basic Prices, GST @ 18% Extra | 24,000 | 24,000 | 22,800 |
| Ex-Durgapur | Basic Prices, GST @ 18% Extra | 24,500 | 24,800 | 23,325 |
| Ex-Giridih | Basic Prices, GST @ 18% Extra | 24,500 | 24,300 | 23,425 |
| Ex-Hyderabad | Basic Prices, GST @ 18% Extra | 25,300 | 25,150 | 24,000 |
| Ex-Ludhiana | Basic Prices, GST @ 18% Extra | 26,600 | 27,000 | 25,800 |
| Ex-Raigarh | Basic Prices, GST @ 18% Extra | 25,100 | 24,800 | 23,950 |
| Ex-Raipur | Basic Prices, GST @ 18% Extra | 25,000 | 25,000 | 24,275 |
| Ex-Vizag | Basic Prices, GST @ 18% Extra | 24,200 | 23,700 | – |
| FOB India* | Duty & taxes extra | 360 | 355-360 | 335 |
*Prices in USD/MT
Source: SteelMint Research
Leave a Reply