Pig Iron Market Updates on Week 27

Demand for Pig iron remain dull in Indian market; no discounts work.

Despite price cuts and discounts offered by primary Pig iron manufacturers, buying is heard to remain poor in the Indian market. Participants are hesitatant towards bulk-buying even against discounts of INR 100-400/MT on booking of quantity above one rake.

Offers for steel grade Pig iron by Odisha based plants like NINL (Cuttack) and SAIL-RSP (Rourkela) are at INR 17,400/MT, ex-plants, with quantity discounts upto INR 400/MT on bulk purchases around 14,000 MT. Whereas, secondary manufacturers here are offering the same grade in retail quantity at INR 17,200-300/MT, ex-plant.

Pig iron offers at Durgapur are also witnessing a perfect competition; prices here range between INR 17,000-17,200/MT, ex-plant. Bulk buying is more inclined towards INR 17,000/MT, ex-plant. Similar grade of Pig iron at Bokaro is offered at INR 17,000/MT ex-plant and INR 17,200/MT to Durgapur (delivered, freight included).

Meanwhile, prices in other parts of India remain unchanged. Offers in central India are at INR 18,000-200/MT ex-Raigarh and INR 18,700-800/MT, ex-Raipur; northern India at INR 23,000/MT, delivered to Ludhiana (including ED) and southern India at INR 18,700/MT ex-Vizag and INR 19,500-700/MT ex-Hyderabad.

Trade wise

1. MMTC is about to ship 42,000 MT Pig iron to Thailand. Loading taking place at Paradip Port
2. MMTC settled export deal at USD 264/MT FoB Paradip Port
3. Sesa sailed 30,000 MT Pig iron to Thailand last week; settled deal at USD 273-275/MT CFR Thailand, a month back
4. Vizag Steel received bid at USD 257/MT FoB Vizag; tender is yet to be awarded
5. Chinese billet has hit Pig iron market, both domestic and global.
6. Offers for Chinese billet are around USD 355/MT CFR South East Asian ports

 Pig Iron Prices as on 30 Jun’15

Source: SteelMint Research