Neelachal Ispat Nigam Limited (NINL), a state owned and one of the largest merchant Pig Iron manufacturers follow the suit by increasing its prices.
Recently, other private manufacturers have raised their offers on the Supreme Court’s interim order of shutting down 26 Iron ore mines in Odisha.
NINL raised its Pig iron prices by INR 1,500/MT to INR 24,500/MT (Ex-Cuttack), which the company held unchanged for the month of May at INR 23,000 for Steel grade. Offers are valid till 30 May, 2014.
Other private manufacturers mostly based in eastern region of India, like MESCO, Adhunik Metaliks, Jayswal Neco, Atibir, Neo Metaliks had already raised offers upto INR 3,000/MT earlier this week.
Current offers for Steel grade Pig iron across India are hovering in the range of INR 24,500-27,500/MT (USD 415- 465/MT) on Ex-Works basis.
Market traders anticipate prices have over increased and will find tough to get support at these levels. Appreciating INR and comparatively lower prices in global market will build pressure on Indian Pig iron prices.
[su_quote cite=”A trader based in eastern region”]There is a sense of panic in the market looking at scarcity of Iron ore. Prices have moved up more than expected. It should not sustain at these levels as people will prefer imported Scrap or Pig iron.[/su_quote]
It will be interesting to see how NINL will respond to its latest Pig iron export tender, which was floated on 15 May, 2014. Global prices are around USD 374-377/MT FOB East Coast India.
Currently, Indian Rupee has also appreciated to 58.5 /USD, giving further lower realizations to Indian exporters.
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