SAIL-IISCO’s expansion turns out to be an unavoidable threat to local Pig iron manufacturers.
Steel grade Pig iron prices in India’s most active market, Durgapur, witnessed a sharp fall of INR 500/MT W-o-W. Pig iron here is currently traded at INR 18,000-18,200/MT, ex-Durgapur.
Dull demand for steel, coupled with high competition from the primary manufacturers such as SAIL, Neelachal Ispat has led to such price corrections.
Participants in Durgapur blamed excessive supply of Pig iron from IISCO’s newly expanded plant at Burnpur, as one of the major reasons for price pressure in market. Currently, offers from IISCO plant is at around INR 17,700-17,750/MT, ex-Burnpur.
Another manufacturer here shared, “Market at present is so conscious about buying that you can only find hand-to-mouth purchase. No furnaces want to purchase the material beyond the appetite of three-day .”
Similar is the scenario in central India, where Pig iron at Raipur is trading at INR 19,500/MT, ex-works and INR 19,000-19,300/MT, ex-Raigarh.
Pig iron at Ludhiana is traded at INR 300-400/MT down, from previous week. Currently, the offers for steel grade pig iron are at INR 23,000-23,300/MT and for foundry grade pig iron at INR 24,700-25,000/MT, delivered price (including ED). Prices in remaining markets were unchanged.
MMTC’s reissued export tender is scheduled for 20 May’15. Its previous tender that was held on 11 May’15 had failed. Now market participants have kept their eye on 20 May’15 tender, which would determine further price-trends in the market.
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