Steel grade pig iron prices in Indian market have fluctuated slightly since quite some time following price movement in Billet market, SteelMint learned from trade participants and private pig iron producers as well.
The fresh offers in eastern India are hovering at INR 23,500-23,800/MT ex-Durgapur, INR 23,500-23,700/MT ex-Jharkhand & INR 22,800-23,000/MT ex-Jajpur, Odisha.
Coming to central region where pig iron is at around INR 23,500-23,700/MT FoR Raigarh & INR 23,800-24,000/MT FoR Raipur. Meawnhile in northern India, the offers are evaluated at INR 26,300-26,500/MT FoR Ludhiana.
Stockiest in central & northern regions stated that, despite closure of NINL plant, there is no scarcity in the market as furnaces have already curtailed production in major locations at close to 30-50%. Thus, this has balanced Indian pig iron industry resulting slight change in price range by INR 300-500/MT.
Further in eastern region the producers have mentioned that, average deals are taking place, hence they are not looking any major change in near days amid sustained raw materials.
In addition it also learned that, supply of pig iron in domestic market likely to remained on same line as there is no news for immediate resume operations by NINL, which is the India’s largest pig iron producer and exporter as well, which had shut operations since mid of Aug 2019.
Neelachal Ispat Nigam Limited (NINL), Odisha, is a joint venture company of MMTC ltd. and Government of Odisha through IPICOL and OMC Ltd. This is a 1.1 MnT integrated Steel Plant. In the past, SAIL had tried to take over NINL several times in 2007, 2010 and 2014; but for various reason it could not materialize. In May 2007 with approval of committee of secretaries, SAIL wanted to take back NINL (which was originally founded by SAIL in 1982) by paying around 1000 crores to promoters. Now that MMTC Ltd, main promoter decided to quit NINL, it will be prudent to revive the earlier proposal, to merge NINL with steel behemoth SAIL.
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