Indian Pig Iron Export Prices Fall in Recent Deal to China

Following decline in global prices and dull domestic trades, Indian pig iron export prices have also witnessed a drop. Indian pig iron export prices have come down by around USD 20 in last two weeks.

An Indian mill is reported to have concluded 25,000-30,000 MT basic grade pig iron export deal to China for May shipment. The deal was heard to have concluded through a global trader at around USD 321-323/MT, CFR China. This would translate to around USD 302-305/MT, FoB India basis. According to SteelMint assessment, Indian pig iron export prices are trading at over 2.5 years low as similar levels were reported in May'17.

In 2nd week of Mar'20, SteelMint reported that one of India's leading pig iron manufacturer and exporter concluded deal for 25,000 MT pig iron via tender. The tender floated was for steel grade pig iron having specifications - C- 3.5% min, S - 0.08% max, Si - 1.2% max, Mn - 1.2% max and P- 0.14% max. The material shipment lay can is between 20-25th Mar'20. The deal was reported to have concluded to China at around USD 345/MT, CFR China.

Pig iron trades in Indian domestic markets have slowed down following imposition of lockdown in order to prevent COVID-19 outbreak.

With consistent resumption of operations in Chinese mills and increased capacity utilization, demand for semi-finished imports (billet and pig iron) have further gained strength.

CIS pig iron prices have also come down sharply on Ruble depreciation against USD. Ruble hit five-year low against USD in Mar'20. It is presently trading at 79.2 against USD vs 66 a month back. CIS pig iron export prices are assessed at USD 305/MT, FoB Black Sea.