During a week, Pig iron offers in Indian secondary market fell by INR 500-1,000/MT.
Indian Pig iron offers are falling constantly on the grounds of slowdown sales, increasing selling pressure and price competition between primary and secondary manufacturers.
NINL has recently reduced prices by INR 1,000/MT (USD 15). Post that secondary manufacturers also lower down their offers by INR 500-1,000/MT to compete with NINL’s offers.
If market sources to be believed there is scope of further price corrections in Indian Pig iron offers, especially in central India, looking at increased supply and cheaper sponge & scrap prices amid seasonal slow off-take.
Current offers for steel grade Pig iron are prevailing at INR 16,700-21,500/MT (USD 245-320/MT) on ex-works basis.
Recently, MMTC has canceled 15,000 MT Pig iron export tender, which expired on 28 Jun’16. As per the company documentation, it has been canceled due to some administrative reasons. Another export tender for 15,000 MT Pig iron is in the pipeline. The export tender is to be conducted on 5 Jul’16. The shipment for this tender has been scheduled between 5-15 Aug’16.
Highlights
1. Jayaswal Neco Industries and Jindal Steel reduced offers twice in a week’s time. Current offers by Jayaswal Neco Industries are assessed at INR 17,900-18,000/MT ex-Raipur and Jindal Steel at INR 17,700/MT ex-Raigarh.
2. Atibir Industries has reduced steel grade offers by INR 500/MT to INR 17,100/MT ex-Giridih, Jharkhand.
3. Tata Steel’s pooled iron offers unchanged at INR 14,700-14,800/MT ex-Kalinganagar plant.
4. IISCO (SAIL’s unit) offers are assessed at INR 16,100/MT ex-Burnpur. The plant is dealing only in bulk quantities and mostly deals are concluded to north India.
5. Durgapur Steel Plant’s (DSP) offers are heard at INR 16,200/MT ex-Durgapur.
6. RSP tender for 6,100 MT Pig iron scheduled on 9 Jul’16- Sources
7. Durgapur based merchant Pig iron sellers namely Neo Metaliks, Kajaria Iron and Jai Balaji Industries have reduced offers to INR 17,000/MT. As per traders, few deals have concluded at INR 16,900/MT.
8. Sources reported Sesa Goa and few other south based manufacturers have kept their offers unchanged at INR 18,400-18,500/MT, FoR Hyderabad (including CST & freight).
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