India-based basic pig iron (BPI) mills have issued a new hike in offer prices to their domestic market, aiming to offset higher input costs, in particular the increase in prices for metallurgical coke. Furthermore, the suppliers are seeking to take advantage of the absence of a few suppliers. “Two pig iron producers, Rashmi and KIC Metallics, are not producing this month, so 50,000 mt is missing from supplies,” a major Indian pig iron supplier commented with regard to the current market situation.
Accordingly, by the end of the current week offers of basic pig iron (BPI) in eastern regions in India have risen to INR 43,000-43,500/mt ($582-588/mt) ex-works, up INR 3,000/mt ($41/mt) since the beginning of the week. As SteelOrbis has reported earlier, offers for metallurgical coke 80-100 mm of BF grade in the Indian market have increased by INR 3,000-5,000/mt ($41-68/mt) compared to the previous levels, to INR 45,000/mt ($609/mt) ex-works.
In the export segment, Indian BPI producers have opted to take their time to voice new targets, preferring as of now to evaluate the current business environment. However, given the developments above and also the temporary withdrawal of offers from Brazilian suppliers due to adverse weather conditions in Brazil, Indian BPI suppliers will likely search for higher export quotations as well. The latest export booking was done at around $505/mt FOB within the past week, with the material destined to be shipped to China, as SteelOrbis reported.
$1 = 73.9223 INR