Visa Steel re-starts Pig Iron Production in Small Quantities
Visa Steel, which has recently re-started Pig iron production after more than a year’s time, is offering its material at INR 23,000/MT (Basic); offers are equivalent to NINL’s prices. It operates a single Blast Furnace in Cuttack (Odisha), with an installed capacity of 0.23 MnT pa (225,000 MT pa).
Visa is using 20-25% Sinter and 75-80% Iron ore lumps (from OMC’s mines) as its Blast Furnace raw material, for Pig iron making. Owing to Iron ore availability (quality & quantity) issues and its high prices, it’s Pig iron plant was nonoperational since one year.
According to sources, “currently, production is on the lower side because of limited demand and about 30,000 MT Pig iron was manufactured in the month of October. It is using the material for both captive requirement (70%) and domestic sales (30%) as well“.
Steel & foundry grade Pig Iron Prices remain Firm
Slowdown in Steel demand on account of poor infrastructure development has resulted in limited Pig iron requirement. Steel and foundry grade Pig iron prices are almost stable, other than a couple of locations.
Low stock position has pushed up prices (Steel & foundry) by INR 750/MT in Chennai (Tamil Nadu) and by INR 350/MT (foundry) in Durpaur (West Bengal). Poor off take has pulled down (Steel) offers by INR 200/MT and INR 500/MT in Durgapur and Giridih respectively.
Pig iron manufacturer based in Bokaro (Jharkhand) is not offering its material in domestic market and is using it for captive consumption. In Ludhiana, offers witness an uptick by INR 200/MT (Steel) and INR 600/MT (foundry).
The Goa based Pig iron maker is concentrating on export market and has a monthly sales target of 30,000 MT. About 20,000 MT of the remaining quantity is being offered to domestic takers. Coke prices have gone up by USD 5 to USD 276/MT CFR India in last one month. INR is at 63 against USD and in the week ahead, experts say that INR might trade in the range of 62.50-63.50 against USD.
Basic Prices (INR/MT)
Lud: VAT extra
*Incl freight only
Export (USD/MT FoB)
CIS (Ukraine): 380-385
India: 396.02
SAIL’s RSP Offers Pig Iron to Domestic Takers
SAIL’s Rourkela Steel Plant had offered 5,000 MT Pig iron to domestic buyers on 07 November, 2013, for sales 07 November to 31 December, 2013 from through Road only. Market participants mentioned that SAIL’s RSP has offered Pig iron to domestic buyers after about a year’s time or more, so as not to add on to the rising inventory of finished steel.
Quantity and Prices: 4,000 MT from PCM 1 at INR 23,000/MT and 1,000 MT from PCM 1 at INR 23,500/MT. Minimum booking quantity is 50 MT or its multiples with period of booking from 07-13 November, 2013. Arrangement of loading to be made by buyers.
Offers are equivalent to MMTC’s (on behalf on NINL) last opened Pig iron prices from Cuttack (Odisha). Domestic takers in the western part of Odisha have prefer to take the material and it will be cheaper than MMTC’s Pig iron because of lower freight charges.
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