Pig Iron suppliers in the Indian market, primarily based in the eastern region, foresee limited opportunities for a significant price downtrend despite recent Steel price decline among secondary (mid-sized) Steel mills in major locations. Rising input costs, particularly in Iron Ore and Coke, and an optimistic outlook on Steel demand in the coming weeks, are the driving forces behind this price support.
Durgapur’s producers have maintained their prices with only marginal adjustments, and they are not inclined to decrease rates. The impetus for this stance lies in a recent surge in Iron Ore and Coke prices, which is increasing their input costs. Additionally, these producers anticipate an improvement in Steel demand, especially with Secondary mills, in the near future. Such an uptick in Steel demand is expected to positively influence the Pig Iron market.
Despite a substantial decline in Billet prices by Rs 500-1,000/ton over a week, Pig Iron prices in Raipur and Durgapur have fluctuated only modestly, ranging from Rs 100-300/ton week-on-week. This suggests Pig Iron industry stability, even in the face of reduced Steel prices and sluggish demand among manufacturers.
Foundry-grade Pig Iron prices, on the other hand, have remained remarkably stable. Major Indian Pig Iron producers are expected to announce price increases due to escalating raw material costs and a sufficient backlog of orders.
Steel Grade Pig Iron
Foundry Grade Pig Iron
Numerous factors are at play, contributing to the strength of the Pig Iron market despite Steel price declines including:
With the backdrop of soaring input costs, particularly in Coal and Iron Ore, Pig Iron producers seem inclined to maintain higher prices in the short term, even in the face of subdued demand. Their decisions may be swayed more by the anticipation of a recovery in Steel demand rather than the risk of a sharp price decline.
Pig Iron suppliers in Durgapur, India, keep prices stable amid increasing input costs, expecting a rebound in Steel demand. Unlike Steel, Pig Iron prices show minimal fluctuations. Foundry-grade Pig Iron rates remain steady, with producers planning upward adjustments due to sufficient orders and rising raw material expenses.