India: Private Pig Iron Producers Lower Offer Amid Price Competitiveness

Price competition has increased among private & state owned pig iron producers. This has resulted in significant fall in prices in eastern & central India where the large number of merchant pig iron suppliers are based.

As per assessment the price fall is about INR 500/MT ($ 7) W-o-W & INR 1,500-2,000/MT ($ 21-28) M-o-M basis.

With the latest price reduction through the private pig iron producers in eastern region, the offers for steel grade material are hovering at 10-11 month's low at around INR 27,000/MT ex-works, Durgapur & Jharkhand.

Similarly the prices in Central regions - Raipur & Raigarh are trending low since Feb'18 at INR 27,900-28,000/MT FoR. The offers are floated from stockiest end.

Amid declining offers through the private producers, market participants expect the state owned - Neelachal Ispat (NINL) and government owned - Steel Authority of India Ltd (SAIL) to also cut prices to attract buying inquiries.

The offers of steel grade pig iron for Jan'19 by NINL was floated at INR 27,000-27,400/MT ex-plant, Cuttack, eastern India. Meanwhile by the SAIL it hover at INR 27,800-28,000/MT ex-plant, Bhilai, central India.

SAIL is India's largest steel producer in terms of capacity which is about 21 MnT per annum. Meanwhile in context to Pig iron NINL is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.

Offers through the producers

1. Neo metaliks has floated offers for steel grade general bookings at INR 27,200/MT ex-plant. Although for bulk bookings discount being offered by INR 100-200/MT.

2. Electrosteels in Bokaro, Jharkhand reported offers at INR 27,000-27,200/MT and the last week trades were reported at around INR 27,300/MT ex-plant.

3. Atibir Industries offers for bulk quantities heard at around INR 27,000-27,200/MT ex-plant & general bookings nearly at INR 27,500/MT, ex-plant, Giridih, Jharkhand.

4. Jindal steel has reduced prices by INR 400/MT during last week and offers for Steel grade stood at INR 27,500-27,800/MT ex-plant, Raigarh, central India.

5. As per sources, Mesco steel in Jajpur, Odisha is trading Steel grade material at INR 26,800-26,900/MT ex-plant. In the last week offers for the same through the participants were reported at close to INR 27,000-27,100/MT ex-plant.

6. Seaborne premium hard coking coal prices mostly stable last week after a steep drop of about USD 9-10/MT prior to last week. The prices for Premium HCC assessed at around USD 203-204/MT CNF India.

7. SteelMint's Pig iron export price assessment stood at USD 355-365/MT FoB India, USD 330-340/MT FoB Brazil & USD 325-335/MT FoB Black sea.