Vizag Steel, a state owned and one of India’s largest merchant Pig iron suppliers, has cut prices by INR 500/MT (USD 7.5) for September deliveries, according to sources. This price cut comes as a surprise for market, especially when other manufacturers are increasing prices due to higher raw material cost and improved export demand.
Market participants mentioned that Vizag Steel’s price cut will have little impact on the market. They claim that the company’s Pig iron supply has been limited in last few months owing to transport issues.
“There will be little impact of Vizag Steel’s Pig iron price circular. Logistic has been an issue for quite sometime. We are unable to lift cargo from the plant. Pig iron rates are showing upward trend across the country since past few weeks. The raw material prices (coking coal) are also moving up and it might affect prices further”, said a Pig iron trader based in Hyderabad.
Indian Pig Iron Export Increases in August
Indian Pig iron export increased in the month of Aug’16. Three bulk shipments were recorded in August at an average price of USD 235-240/MT FoB India. Manufacturers claimed that they have sufficient inquiries for export and more deals are expected to happen in September. MMTC’s 30,000 MT Pig iron export tender is due on 8 Sep’16.
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