The Indian Pig Iron market is expected to remain volatile as indicated by market participants. Steel prices saw an initial surge in September 2023, but the Pig Iron market experienced a downtrend (declined by Rs 500-1,000/ton week on week). This decline can be attributed to sluggish demand and uncertain market trends.
Let’s explore the factors affecting the Indian Pig Iron market and its prospects.
Pig Iron producers in both the eastern and western regions of India have reported a slight slowdown in demand, primarily due to slightly dull Steel sales with secondary (mid-sized) Steel mills. However, industry experts believe that inquiries will bounce back in the coming weeks, possibly after the celebration of Vishwakarma Puja on 17-18 September.
After the festivities, smelters are expected to resume purchases to secure raw materials for their ongoing operations. Robust Steel demand anticipation also plays a significant role in this scenario, as India is gearing up for the Lok Sabha elections in the first half of 2024. The government is keen on completing major ongoing projects at a rapid pace and announcing new infrastructure initiatives to showcase the country’s growth potential.
Let’s have a look at the current prices across various grades:
1. Steel Grade
2. Foundry Grade
Several factors are contributing to the resilience of the Indian Pig Iron market despite recent challenges:
Considering these factors, the domestic Pig Iron industry is expected to witness changes in the range of 1-3% in the coming days. A lot depends on the stability of Steel demand and Coke price movements. Also, if there is the resumption of Pig Iron exports, along with other Steel products, could inject momentum into the market.
As we move forward, it’s crucial to keep a close watch on developments in the Steel sector, especially as the rainy season concludes. The construction sector is expected to pick up pace, which could provide a much-needed boost to the Indian Steel market.
In a volatile Indian Pig Iron market, the interplay of factors like Steel demand, raw material costs, and government projects shapes its future. Despite recent challenges, the market appears resilient. As political events and construction activities progress, staying watchful remains essential for industry stakeholders in this dynamic scenario.