Neelachal Ispat has resumed domestic Pig iron sales at higher prices. It is offering N2/Steel grade material with Si% 1.25-1.79, at INR 24,500/MT (ex works Cuttack).
Prices have increased by INR 500/MT in comparison to the last month as stock position is low at around 4,000 MT and improved demand.
Owing to a couple of shipments (61,000 MT) made in this month, only 4,000 MT of N1/Steel grade (Si% up to 1.24) is available. The company is not selling N1 grade as it has to meet with 30,000 MT shipments.
Sources said, “NINL is producing about 1,800 MT Pig iron per day and is facing difficulties in Iron ore procurement. It has also planned to take a 3 months maintenance shutdown in Q1 FY15, in order to enhance the operational capacity of its only Blast Furnace.”
Secondary Pig iron manufacturers say, “NINL’s current prices might not have a big impact as SAIL’s RSP has been dominating market for 2 months now. It recently sold 2 rakes to Mandi Gobindgarh and induction furnaces in eastern region.”
SAIL has offered 49,000 MT Steel Pig iron at INR 23,000-23,200/MT (basic) for delivery till 28 Feb, 2014. It costs only about INR 23,800/MT (landed) to Jajpur based buyers because of which sales of other producers dropped drastically.
Giridih Pig iron offers rise by INR 500/MT to INR 25,200/MT (basic) owing to short supply in the region, coupled with better demand and rise in NINL prices, which would stand at INR 26,300/MT (landed).
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