Secondary producers in Central, East & South India have reduced Pig iron prices on price fall by NINL. Moreover, in raw materials coking coal offers remain unaltered which was constantly on rising mode.
Current offers for Steel grade pig iron are prevailing at INR 20,500-21,500/MT (US$ 308-318) & Foundry grade at INR 20,500-25,500/MT (US$ 303-378) ex-works. However, Coking coal offers are prevailing at US$ 321-322/MT CFR India, similar against previous week offers.
Sources added that, domestic sales may remains poor due to liquidity crunch on demonetization of Indian currency. They further mentioned that, falling Ingot/billet production may further put pressure on Indian pig iron prices.
Trade Highlights
1. Tata Steel and Tata Metaliks have kept their offers firm for Ferroshots and Foundry grade pig iron, respectively.
2. Jindal Steel’s offers down for steel grade material by INR 300-500/MT to INR 21,000/MT ex- Raigarh.
3. Offers in Raipur are evaluated at INR 21,000-21,400/MT ex-plant.
4. According to traders, Neo Metaliks in Durgapur, offering steel grade material at INR 21,200-300/MT and foundry grade at INR 24,300-24,500/MT.
5. An official from Electrosteel reported, few deals is being concluded for Durgapur at INR 20,800-21,000/MT FOR, in the current week.
6. Offers plunge down in Ludhiana by INR 1,000/MT; steel grade at INR 24,500/MT & foundry at INR 28,000/MT FOR, (Including ED at 12.5%).
7. Neelachal Ispat has reduced Steel Grade prices by INR 1,000/MT and Foundry Grade by INR 600/MT. Current offers for Steel grade (N1) at INR 20,500/MT & Foundry (N2) at INR 21,000/MT; quantity discount up to INR 300/MT.
Pig Iron prices as on 22 Nov’16 (Ex-works)
| Particular/Delivery | Size/Grade | Prices | W-o-W | M-o-M |
| Ex-Cuttack | Steel Grade | 20,300 | – 500 | -1,000 |
| Ex-Durgapur | Steel Grade | 21,000 | – | + 500 |
| Ex-Giridih | Steel Grade | 21,000 | – | + 500 |
| Ex-Hyderabad | Steel Grade | 21,500 | – 1,000 | – 1,000 |
| Ex-Jharsuguda | Steel Grade | 20,000 | – 500 | – |
| Ex-Ludhiana | Steel Grade | 24,500 | – 1,000 | – 500 |
| Ex-Raigarh | Steel Grade | 21,000 | – 350 | – 400 |
| Ex-Raipur | Steel Grade | 21,300 | – 100 | – 200 |
| Ex-Rourkela | Steel Grade | 20,000 | – | – |
| Ex-Vizag | Steel Grade | 21,500 | – | – |
| Ex-Durgapur | Foundry Grade | 24,400 | – | – 100 |
| Ex-Kharagpur | Foundry Grade | 25,500 | – | – |
| Ex-Ludhiana | Foundry Grade | 28,000 | – | – |
Prices in INR/MT, all taxes excluded
Source: SteelMint Research
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