Pig iron offers in domestic market have reached at INR 20,700-23,000/MT (USD 308-343) levels. Prices jumped up by upto INR 2,500/MT W-o-W, INR 3,400-6,200/MT M-o-M and INR 3,800-6,400/MT Q-o-Q.
Many induction operators reported that they have reduced the consumption of Pig iron and switch to alternate CI Scrap and Calcined Pet Coke (CPC).
Exports Nil in Sep’16
According to Indian customs, Pig iron export is nil in the current month as the manufacturers are selling material in domestic market due to high realization. However in Aug’16, exports were above two-fold at 54,750 MT against 23,500 in Jul’16. Indian Pig iron exports in the previous months increased significantly on the grounds of expensive Chinese billet offers and higher global scrap offers.
Trade-wise
1. Current offers for steel grade material are INR 21,800-22,000/MT ex-Raipur, INR 21,000-21,300/MT in Durgapur, INR 20,500-20,700/MT ex-Cuttack/Jharsuguda/Rourkela, INR 23,000/MT in Hyderabad, INR 28,000/MT in Ludhiana.
2. Tata Steel’s ferroshots offers are assessed at INR 20,500/MT and Pooled iron at INR 18,000-18,200/MT ex-plant, Kalinganagar. An official from Tata Steel reported that buyers are skeptical about bulk purchases. Previous bookings are still on pipeline. Price revision most probably in the upcoming month.
3. Similarly in central India, manufacturers halted their fresh offers and currently traders are active in the region. According to officials, Jayaswal Neco Industries in Raipur and Jindal Steels in Raigarh are not offering material in the open market. The company’s last trade was heard at around INR 22,000/MT ex-plant. Traders offers are assessed at INR 21,800-22,000/MT ex-works.
4. In Odisha, Rourkela Steel Plant (RSP), a subsidiary unit of SAIL, has concluded its last tender in the price range of INR 20,500-20,900/MT. According to participants, about 2,100 MT material has been sold from the total quantity of 3,000 MT.
Indian Pig Iron Offers as on 27 Sep’16
| Particulars | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | 20,700 | – | + 4,300 | + 3,800 |
| Ex-Durgapur | 21,000 | + 450 | + 3,425 | + 4,150 |
| Ex-Giridih | 21,100 | + 500 | + 4,150 | + 4,050 |
| Ex-Hyderabad | 23,000 | + 1,660 | + 4,700 | + 4,600 |
| Ex-Ludhiana | 28,000 | + 2,500 | + 6,150 | + 6,350 |
| Ex-Raigarh | 22,000 | + 650 | + 4,400 | + 4,350 |
| Ex-Raipur | 22,100 | + 150 | + 4,100 | + 4,250 |
| Ex-Rourkela | 20,700 | + 1,350 | + 4,700 | – |
Basic prices in INR/MT
Source: SteelMint Research
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