Indian Pig Iron Prices Remain Volatile

Steel grade pig iron prices in Indian domestic market remained volatile by INR 300-500/MT (USD 4-7) despite a sharp plunge in local billet prices.

As per private pig iron producers, demand is average presently and as per productions deals are taking place amid better lifting of material. Hence they are not in hurry to drop prices.

The current offers of basic (steel) grade pig iron is assessed at around INR 23,900-24,100/MT FoR Raipur, INR 23,500-23,800/MT ex-Durgapur, INR 22,900-23,000/MT ex-Jajpur(Odisha), INR 23,300-23,700/MT ex-Jharkhand & INR 25,900-26,100/MT FoR Ludhiana; excluding 18% GST.

In line Foundry grade pig iron, the prices being unchanged by TATA Metaliks known as largest Foundry grade pig iron manufacturer in eastern India and reported at INR 29,600/MT (USD 417); ex-plant, Kharagpur, eastern India.

Meanwhile, the prices by private plants in north, west & eastern regions have slightly fluctuated and stood at near to INR 29,500/MT ex-Delhi, INR 29,700-29,800/MT FoR Ludhiana, INR 32,000-32,200/MT FoR Ahmedabad & INR 28,600-28,800/MT ex-Durgapur; excluding 18% GST.

Exports

Coming to price movement for exports, there is no fresh export deal heard. However recent a export tender has been floated by Vizag Steel (RINL) - a leading state-owned Pig iron producer of 25,000 MT basic grade steel making Pig iron for any country other than Nepal.

The bid due date for the tender was 17 Sept'19 which remain valid for acceptance by RINL until 24 Sep'19. As per the delivery schedule, the last date of Shipment shall be 31 Oct'19.

Prior to this, the company has canceled its export tender for the same quantity which was due on 06 Sept'19. The company did not fetch bids owing to which the tender was canceled, stated sources.

In mid Aug'19, SteelMint reported that an Indian mill concluded a 30,000 MT pig iron export deal. The deal is learned to have been concluded to SE Asia at around USD 330-335/MT, FoB India.