Indian Pig Iron Prices Decline Following Correction In Billet Prices

Due to the Indian government’s announcement to remove export duties on several steel products including raw materials, the Indian pig iron market has seen a decline after constant growth and volatility in offers since the end of November 2022.

Steel-grade pig iron prices dropped by Rs 300 – Rs 1,500/ton, with the sharpest decline in the central region, falling by Rs 1,000-1,500/ton. The east and north regions saw a drop of Rs 300-500/ton.

Current Offers

Mills in Durgapur are offering steel-grade pig iron at a range of Rs 44,000-44,500/ton ex-works, while in Raipur, it is being traded at around Rs 42,300-42,500/ton.

One of the major pig iron producers- TATA Metaliks, has reduced its foundry grade pig iron offers by Rs 700/ton to Rs 48,800/ton ex-works in Kharagpur, east India.

In north India, traders in Ludhiana (Punjab) are offering steel grade pig iron at Rs 46,000-46,200/ton and foundry grade at Rs 48,000-48,200/ton on a delivered basis.

Reason For Price Decline

The price decline is primarily due to a sharp drop in steel billet prices by Rs 1,000-1,500/ton in a week.

Secondly, due to pig iron’s higher offers, most buyers have postponed bulk bookings, leading to a dull response from suppliers. This has increased pressure on pig iron producers to reduce their offers to attract buying inquiries. 

Participants in Durgapur have also reported that supply from major pig iron plants from Odisha and west India has improved in the spot market as there are no fresh export orders. This led to an imbalance in supply and demand, resulting in a decline in prices.

Future Prospects 

Market experts believe that the pig iron industry price outlook will depend on the steel (billet) price movements of mid-sized mills and export inquiries with major pig iron plants.

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