Buying Interest for Indian Pig Iron Falls Following Decline in Global Scrap Prices

Further decline in global scrap prices and softening demand in Indian domestic market have resulted in downwards movement in Indian pig iron export prices.

Current assessment for export of Indian origin steel grade pig iron stands at around USD 370/MT, FoB India. This is lower by USD 10 against SteelMint's previous assessment which was around USD 380-385/MT, FoB India. The assessment has moved down by almost USD 25-30/MT against mid of Jan'18.

As per market sources, a private Indian pig iron manufacturer was heard offering a cargo for export which expired on end of Jan'18. However the deal has not yet been concluded as prices in domestic market are still attractive.

Global scrap prices have maintained its downtrend since last week. Price of US origin imported HMS (80:20) scrap in Turkey moved down by around USD 10-15/MT W-o-W to USD 345/MT, CFR.

Following decline in global scrap offers, price assessment for Indian pig iron export has also fallen.

Pig iron export offers from CIS nations has also moved down further by USD 5/MT and is heard around USD 365/MT, FoB Black Sea.

Pig iron import prices in Italy from CIS nations has also moved down and is assessed at USD 380-385/MT, CFR.

Domestic Indian pig iron prices stable, demand slows down - Domestic pig iron prices in eastern India have reported stability this week with minor corrections of INR 100/MT W-o-W. However market participants reported limited inquiries at this price. Presently, the offers for Steel grade pig iron are hovering at INR 26,200-26,400/MT (USD 409-412) ex-Durgapur.