Indian Pig Iron Prices Hit Lowest In 2023 Due To Changed Domestic Supply

The Indian pig iron market has seen a price decline, hitting a low of 2023 on account of improved supply and stagnant demand from domestic steel manufacturers.

Steel-grade pig iron prices have dropped by Rs 500-Rs 1,500/ton in a week, with the sharpest fall in the eastern, and northern regions, falling by Rs 1,000-1,500/ton, in a week. The overall decline in prices during 2023 was about Rs 2,000-3,000/ton.

Current Offers

Today fresh offers for the Durgapur-based mills for steel-grade pig iron range from Rs 42,500-43,000/ton ex-works, while in Raipur, it is being traded at around Rs 41,500-41,800/ton.

In northern India, traders in Ludhiana (Punjab) are offering steel-grade pig iron at Rs 44,400-44,700/ton and foundry grade at Rs 47,000-47,200/ton on a delivered basis.

Reasons For Price Decline

The decline is largely due to the improved supply in the domestic market, especially for steel-grade pig iron, as the export demand has dried up. The major pig iron producers from western and eastern India are dumping material in the spot market, leading to a mismatch in supply and demand.

Another factor contributing to the decline is the fall in steel billet prices by Rs 1,000-1,500/ton in a week. However, the prices rebounded today, which may impact the pig iron industry positively.

Industry experts in eastern India have reported that supply from major pig iron plants from Odisha and western India has increased continuously for a few weeks. It is due to export orders’ completion and no fresh deals. This has led to an imbalance in supply and demand, resulting in a decline in prices.

Future Prospects

Rising coke prices are indicating that prices should not fall further, and the rebound in steel prices seems to also support pig iron prices, which were under pressure. Export demand will play a key role in price changes in the domestic pig iron market.

Insight 

Pig iron prices decline in the Indian market is largely due to the improved supply in the domestic market, and the export demand will play a key role in future price changes. Rising coke prices and the rebound in steel prices may support pig iron prices and prevent them from falling further.

Read more: Indian Silicon Manganese Market Affected By Changed Steel Prices