Pig iron (foundry grade) availability in domestic market is less in the present day as demand from manufacturing sector has not been good; Prices remain constant in the range of Rs 25,000-28,700/MT in Hyderabad, Koppal and Goa.
In Southern part of the country, Pig iron plants are looking forward to conclude export deals as acceptability from domestic takers is quite low, in terms of both quantity and demand.
Procurement of iron ore from Karnataka e-auctions has hit the input cost of manufacturers on shortage of iron ore in domestic market.
E-auctions is the only
source of raw material supply now, where 35-40% of fines is mixed with lumps,
thus, resulting in 30% low operational capacities of Pig iron plants currently.
Pig iron makers such as
Sathavahana Ispat (Hyderabad) and Kirloskar (Koppal) purchased 4,000 MT
calibrated lumps each, at Rs 3,892/MT, through NMDC's Kumarswamy
mines e-auction in Karnataka, on the 14th of May.
The price gap between
steel (low) and foundry grade (high) Pig iron is also affecting sales.
It is also not viable
for manufacturers to pull down prices further as it would result in selling the
material at quite low prices than the cost of production.
Buyers are shifting from
foundry grade material to steel grade Pig iron containing Si% 1.25-1.75%, which
is available at competitive prices and putting pressure on sales of foundry
grade Pig iron.
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