SteelMint
analyst spoke to Mr Basu Thakur, Deputy General Manger at Visa Steel on Indian
Pig Iron market. The extract of the interview is below:
Q.
What's your view on the Indian Pig Iron market?
A.
We expected Pig Iron market to improve but witnessed the reverse. Some
downfall is seen on factors such as falling scrap in International market, dull
finished market in the country, expensive and scarcely available raw material –
iron ore.
Q.
What is the aspect of Pig Iron price contribution in steel industry?
A.
Production of Pig Iron is not in full swing because of which prices are being maintained.
Offers in ingot and sponge iron slipped upto Rs 1,000 in last one month but
that of Pig Iron reduced by Rs 500. The reason being consumption of Pig Iron in
steel industry is less in comparison to sponge iron. How long can we continue
running our plant on loss and hence decided to hold production.
Q.
Will monsoon cause any changes in price trend, market demand and production
level?
A.
As construction activities are expected to be low during monsoon, Pig Iron
prices will have to be maintained by manufacturers and the suppliers. Demand
for the material should be moderate but production levels might not show signs
of improvement soon.
Q.
Why has Pig Iron exports from the country slowed?
A.
Pig Iron export is not happening as exporters are unable to sell the material
at good margins. It's not workable and response from buyers is not good.
Therefore, export has been kept on hold too.
Q.
What do you think of the markets in near term?
A.
If raw material prices could soften and finished products rise in the range of
Rs 300-500/MT, markets may look a little better.
These
times are difficult and a typical situation for producers as mining problems
and transportation issues exist. However, we expect some improvement to take
place in the next two months. Indian Pig Iron offers might show some marginal
improvement too.
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