Indian Pig iron producers are constantly rising their offers in-line with better demand and increasing coking coal prices in global market. Currently, steel grade Pig iron is being traded at 20-month high levels.
Current offers in India’s east region are assessed at INR 20,500-21,000/MT, south at INR 23,000-23,200/MT, west at INR 20,500/MT and central at INR 22,000-22,200/MT ex-works. The similar price range was last seen in the 1st week of Jan’15.
Coking coal offers are currently evaluated at USD 223-225/MT FoB Australia, which was at USD 125/MT in the beginning of Aug’16; have increased almost by USD 100/MT.
Source reported that trades are taking place at current increased prices and buyers are willing to purchase material in bulk quantities. Thus, it seems that if demand remains supportive in coming days, domestic Pig iron offers may rise again.
Traders, who deal with NINL & Vedanta Resources mentioned that Pig iron exports may fall steeply as the manufacturers are not taking any global bookings, looking at better margins to supply material in domestic market.
Highlights
Central India: Jayaswal Neco Industries and Jindal Steels are offering less quantity in the open market. Current offers by Jayaswal Neco Industries are assessed at INR 22,000-22,200/MT ex-Raipur and Jindal Steels at INR 21,500/MT ex-Raigarh.
East India: Manufacturers in Durgapur have raised their offers to INR 21,000/MT. RSP’s tender concluded yesterday, received higher bids of INR 20,500-20,900/MT. The company’s last tender concluded at INR 18,500-18,700/MT ex-plant, Rourkela. Moreover, NINL has hiked prices by INR 3,000/MT to INR 20,700/MT ex-plant, Cuttack.
South India: Offers have increased by INR 3,000-4,000/MT in last 10-15 days. According to buyers, traders were traded material at INR 22,000/MT on yesterday, but the manufacturers current offers for the same material at INR 23,000-23,200/MT FoR Hyderabad.
West India: Vedanta Resources is offering steel grade material at around INR 20,500/MT ex-plant. According to officials, the plant is not offering material to global buyers due to high price realization in local market. Material is mostly being traded to south and north India.
North India: Short supply amid logistic issue is somehow supporting both steel & foundry grades Pig iron prices. Current offers for steel grade are evaluated at INR 27,000/MT and foundry grade at INR 30,000/MT FoR Ludhiana.
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