Neelachal Ispat Nigam Ltd (NINL), a state owned and one of India’s largest merchant pig iron supplier have booked decent quantities at increased prices, SteelMint learned from market participants.
NINL had increased its pig iron prices by INR 750 (USD 11) on 13th Feb 2019, amid increase in iron ore prices and improved demand from global market.
According to sources, company has booked around 25,000-30,000 MT at revised prices of INR 26,750-27,150/MT (USD 375-380) on ex-mill basis. Participants also credit this acceptance to higher domestic billet prices which has widened the price gap between pig iron and billet. It is to be noted that billet prices have increased by INR 2,500-3,000/MT (USD 35-42) in last two weeks.
Indian export prices improve but on limited buying interest
SteelMint’s assessment for Indian bulk pig iron export prices have increased by USD 15/MT on recent export deal made by a private pig iron producer early this week. Deal was reported at around USD 355-360/MT FOB India to Bangladesh.
Another export tender heard to have received bid at above USD 355/MT FOB level, but it was not sure if it was concluded at the time of publishing.
Market participants feel that price hike is only subject to buying interest from Bangladesh (which pays a premium for Indian pig iron owing to logistical advantage) and mills may not enjoy these prices in South East Asia which is the largest buyer of Indian pig iron.
Leave a Reply