Neelachal Ispat Nigam Ltd (NINL)- India’s largest and state owned steel grade pig iron manufacturer & exporter has again reduced pig iron prices for steel by INR 600/MT (USD 9) & Foundry grade by around INR 1,000/MT(USD 15) w.e.f. 6th July 2018. Prior to this the company had cut prices on 25th June by INR 500/MT (USD 7.5).
As per company’s circular the latest offers for Steel (N1) grade at INR 27,900/MT (USD 405) & Foundry (N2) grade at INR 28,500/MT (USD 414); prices are basic, ex-Cuttack, East India. Bulk purchase discounts remained unaltered in the range of INR 100-400/MT.
Why have pig iron prices come under pressure?
1. Increased production – The company has reduced prices amid increased pig iron production and decline in billet prices. The company registered 69,780 ton pig iron in June which is best monthly production figures of the company since its inception in 2002.
2. Decline in billet prices – Domestic billet prices in eastern India have moved down amid seasonal slow down and limited trades. Prices in eastern India have corrected by INR 1300-1400/MT W-o-W
For NINL price circular click here
NINL Pig iron export tender in pipeline – MMTC had floated export tender of 40,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL). Apart from 30,000 MT firm quantity, the pig iron exporter has also offered an optional quantity of 10,000 MT depending upon the availability of pig iron. The due date for submission of bids is 14:30 hrs on 09 July’18.
The material offered has specification – C: 3.6-4.3%; Si: up to 1.24%; Mn < 1%, S: 0.05% max; P: 0.2% Max. The shipment is scheduled between 21 July-31 July’18 from Paradip port.
Company’s last floated tender for which due date was on 06 Jun’18 was heard to have got cancelled. As per sources the bids fetched were in the range of USD 386-391/MT, FoB India while company’s expectation was around USD 400/MT, FoB.
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