The lingering monsoon rains in some regions of India, coupled with global concerns regarding the future developments in the steel industry, have encouraged Indian basic pig iron (BPI) producers to become more accommodating towards their customers. Specifically, SteelOrbis has learned that this week most BPI suppliers have decided to revise their offers downwards, though the new prices have still failed to entice the desired spur in activity.
Accordingly, new BPI prices in the eastern regions of India have settled at INR 45,000/mt ($565/mt) ex-works, while in the west of the country the material is available at $INR 43,500/mt ($547/mt) ex-works. This is a INR 1,500/mt ($19/mt) decrease at least compared to the levels valid a week ago. “There are rumors of a reduction of export duty. Although there is no clarity on this topic as of today, everybody is waiting for this amendment. That is likely to support the market at least to some extent,” an Indian trader stated. This 15 percent export duty which has been imposed on pig iron in India since May 23 this year has severely undermined the positions of Indian BPI exporters.
Meanwhile, in the coke segment, no changes have been fixed so far since the end of August. Specifically, in the local market blast furnace (BF) coke (64% CSR, 25-90 mm) is officially available at around INR 44,000/mt ($553/mt) ex-works, while the tradable levels have been heard at INR 40,000/mt ($503/mt) ex-works, also unchanged within the past week.