Indian Pig iron prices remain under pressure due to increased supply. During week 26, offers fell steeply by upto INR 1,000/MT (USD 15/MT).
Trade sources believe that prices will fall further due to lackluster demand and increase in inventory levels by both primary and secondary makers.
Sources mentioned that manufacturers based in central & east coast regions are preferring pooled iron over Pig iron as it is cheaper by INR 3,000/MT than Pig iron.
In this week, NINL has also extended expiry date of Pig iron price circular till 30 Jun’16. There are two active Pig iron export tenders of NINL. Participants are expecting the company may revise prices based on response they get in the tender.
Current offers for steel grade Pig iron are prevailing at INR 17,200-21,500/MT (USD 250-315/MT) on ex-works basis.
Trade highlights
1. Raipur based Jayaswal Neco Industries kept offers unchanged to INR 18,900-19,000/MT ex-plant, Raipur.
2. Jindal Steel reduced offers by INR 100/MT to INR 18,700-18,800/MT ex-Raigarh.
3. Tata Steel’s Kalinganar plant is offering Pooled iron at INR 14,800/MT ex-plant.
4. Durgapur based merchant Pig iron sellers namely Neo Metaliks, Kajaria Iron and Jai Balaji Industries are offering at around INR 17,100-17,300/MT. Foundry grade offers are heard by Kajaria Iron at INR 21,500/MT and Neo Metaliks at INR 22,300/MT.
5. RSP’s Pig Iron Tender of 3,000 ton sold at INR 16,750/MT ex-plant (Odisha) – Sources.
6. Ludhiana based traders reported, inventory level continues to increase due to low off-take by buyers. Steel grade is available at INR 21,500/MT and foundry grade at INR 23,500/MT (including ED, CST & freight).
7. South based Gerdau Steel & Santwana Ispat kept offers unchanged to INR 19,000/MT, FoR Hyderabad (Including CST & Frieght). Similar offers are being heard from Sesa Goa on the same terms.
Steel grade Pig iron offers as on 26 Jun’16
| Particular/Delivery | Currency | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | INR/MT | 17,700 | -100 | -1,100 | – |
| Ex-Durgapur | INR/MT | 17,200 | -150 | -950 | -1,400 |
| Ex-Giridih | INR/MT | 17,500 | -100 | -750 | – |
| Ex-Hyderabad | INR/MT | 18,500 | -750 | -2,550 | 500 |
| Ex-Ludhiana | INR/MT | 21,500 | -1,000 | -2,450 | -1,500 |
| Ex-Raigarh | INR/MT | 18,750 | -250 | -1,500 | -950 |
| Ex-Raipur | INR/MT | 18,900 | -200 | -1,750 | -1,350 |
| Ex-Rourkela | INR/MT | 16,750 | -725 | -2,200 | – |
| Ex-Vizag | INR/MT | 19,500 | 0 | – | +2,700 |
| FOB Brazil | USD/MT | 245 | -25 | -30 | +35 |
| FOB India | USD/MT | 230 | -13 | -45 | +30 |
| FOB Russia | USD/MT | 235 | -13 | -48 | 0 |
Basic grade Pig iron offers on ex-works basis
Source: SteelMint Research
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