Foundry Grade Pig Iron Prices in Northern India Rally on Short Supply

Foundry grade pig iron prices in northern region - Delhi & Ludhiana surged by INR 500-1,000/MT (USD 7-14) in last 7-10 days, as per assessment made by SteelMint.

Sources close to the deals reported that, presently supply is limited from the major supplier i.e. Vedanta Resources (Sesa Goa Ltd) due to recent export deal by the company along with logistic concerns for the region.

As per them, on priority the material is dispatched for exports, hence due to which pig iron availability in stockyards is limited in northern region resulting in continued surge in price range by stockiest as well small traders in the region.

The current prices of foundry grade pig iron is hovering at INR 29,500-29,700/MT ex-works, Delhi & INR 30,300-30,500/MT FoR Ludhiana, excluding of 18% GST. These was traded about INR 29,000/MT in both locations during mid of Aug'19.

Sesa Goa, Tata Metaliks & Kirloskar Ferrous are the major foundry grade pig iron producers in India, which largely sells material to north, east & western parts of India.

On an average, the monthly foundry grade pig iron sales/consumption in northern India including surrounding locations of Delhi is about to 30,000-40,000 MT, as reported by participants.