Neelachal Ispat Nigam Limted (NINL), India’s largest merchant steel grade pig iron manufacturer has sold around 25,000 MT of pig iron at revised prices. Company had reduced its price by INR 1,100/MT (USD 16.5) on 5th June 2018 amid increased production.
After reduction, offers for steel grade pig iron stands at INR 28,900/MT (USD 431), plus an additional discount of INR 400/MT on bulk booking. Prices are on ex-plant basis and excluding 18% GST.
“Traders have booked about 25,000 MT pig iron after NINL reduced its prices. This is about 70% of the quantity offered by the company. The market did not expect this sudden price cut from the company.”said a pig iron trader.
NINL has recently completed the capital repair of its 1.1 million tonne blast furnace. The capacity utilization of the BF will be 100% and will produce about 3,500 MT hot metal per day, whereas earlier, production could reach only up to 50-55% capacity .
MMTC pig iron tender
MMTC on behalf of NINL had offered 40,000 MT of pig iron for exports through a tender which will expire today (6th June).
Last tender, which expired on 25th May was cancelled by MMTC on expectation of higher bids. According to sources, company managed to receive bids at around USD 390-395/MT FOB, against expectation of above USD 400/MT FOB.
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