Indian Pig Iron Prices Recover on Better Response

Private pig iron producers in eastern India - Durgapur have slightly raised offers following better response through the local furnaces. The producers have raised prices to INR 27,200-27,300/MT as against deals towards the beginning of last week at close to INR 27,000/MT, ex-plant.

Similarly couple of major merchant suppliers in Jharkhand (Giridih & Bokaro) stated, healthy bookings and one of them has closed sale and another has maintained offers at around INR 26,800/MT ex-plant. It seems that the producers may soon raise offers to take advantage.

-- Atibir Industries in Giridih kept sales closed and last trade reported at INR 27,000-27,200/MT ex-plant.

-- As per officials from Electrosteels Ltd, deals are taking place at the offers of INR 26,800/MT ex-plant, Bokaro.

Following the positive trend in eastern India, the Central India based stockiest have kept offers firm in this week at around INR 27,600-27,700/MT FoR Raigarh & INR 27,800/MT FoR Raipur.

Further as per sources, Neelachal Ispat (NINL) has received average response in recent floated offers of INR 26,500-26,900/MT (ex-plant) for Steel grade material. As per them, the company has managed to book around 15,000-20,000 MT and the major volume is booked for Central India. NINL is India's largest producer & price trend setter for pig iron industry.

However in Northern region prices continue to remain under pressure owing to improved supply. The prices of steel grade pig iron reported at INR 29,500/MT & Foundry material at INR 31,500/MT FoR Ludhiana & excluding 18% GST.

Market expects Indian pig iron prices to hover in same range if steel prices find stability. However a major concern for pig iron industry is weakening exports as there is no major deals since a quarter. Amid weak response the large producer has been extending its export tender. If this situation persist the producer may raise supply in domestic market and might have negative impact on prices.