Public sector Neelachal Ispat Nigam Ltd (NINL) steel plant in Kalinganagar of Jajpur district has lowered its operations due to unavailability of raw material, SteelMint learnt from market sources.
However some participants claim that company has completely stalled their operations owing to financial crisis, but it could not be confirmed at the time of publishing this report.
NINL is one of the largest merchant pig iron producer in the country with has an annual production of 0.8 MnT against rated capacity of 1 MnT. As per reports, NINL’s pig iron production in June’19 was recorded at 43,685 MT against 47,050 MT in May’19 & 69,780 MT in June’18.
Indian pig iron prices continue to fall
Indian pig iron prices continue to remain under pressure owing to falling steel prices. According to SteelMint’s assessment prices have dropped by around INR 2000/MT (USD 29) in last one month.
NINL has not opened its fresh offers, which is due since 13th Jul’19. Last offer stands at INR 25,000-25,400/MT ex-plant, Cuttack, eastern India.
Also company’s pig iron export tender for 30,000 MT may get cancelled owing to limited response.
Pig iron offers from private producers are as follows:
— Jindal Steel is offering steel grade pig iron at INR 25,200/MT ex-Raigarh & panther shots at INR 24,200/MT ex-Angul, Odisha. Also the company is offering trade discount of INR 200/MT bookings of over 1,000 MT.
— Neo Metaliks in Durgapur is offering steel grade pig iron at INR 25,100-25,200/MT, however no major buying interest was reported, as per officials.
— Mesco Steels in Jajpur, Odisha is offering steel grade pig iron at INR 24,100-24,200/MT ex-plant, as per sources.
— Jharkhand based Atibir Industries is offering steel grade pig iron at INR 25,500/MT ex-plant & Electrosteels offers are at INR 25,000/MT ex-plant.
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