NINL, a state controlled and India's largest Pig iron producer in terms of installed capacity (0.85 MnT pa), has decided to hold domestic sales for the month of October.
It is offering Steel grade material for exports purpose only.
Offers Steel/N1 grade Pig Iron through Containers
NINL is offering Steel/N1 grade Pig iron (Si up to 1.24%) to overseas buyers.
Up to 5,000 MT of the material is being offered in a minimum lot of 500 MT, through containers.
Price of the material is standing at USD 391/MT FoB Paradip Port. Freight from Paradip Port to SouthEast Asia stands at USD 30/MT, when exported through containers.
Price is valid till October 25
The Indian exporter is exploring a new market regarding sales of Pig iron in small quantities to international buyers, for parties who might not be interested for 30,000 tonnes at one time.
*Total Sales includes export figures
Domestic Pig Iron Sales on Hold
The company is not offering Steel and foundry grade Pig iron to domestic buyers.
Stock position for N2/N3 grade is nil and NINL has been using N1 grade material mostly for exports purpose. About 15,000 tonnes of N1 grade material is available presently.
The Pig iron manufacturer is uninterested to offer its material in domestic market, looking at low sales volume at last offered prices.
As NINL has been able to close export deals at prices equal to or higher than its domestic offers, it is unwilling to offer the material at low prices. NINL has been a consistent producer and exporter of Pig iron.
It has been concentrating on export market, which results in higher margins and helps to get rid of stock in large quantities at one go in comparison to domestic sales.
Secondary Pig Iron Producers to Benefit
Secondary Pig iron producers are expected to raise offers looking at mismatch in demand (high) and supply (low) because of NINL's exit from domestic market in the current month.
NINL is promoted by MMTC Ltd, IPICOL and other government agencies and has a 1.1 MnT pa integrated steel plant in Jajpur (Odisha).
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