RINL, one of the largest Pig iron sellers in merchant market, has reduced its Steel grade Pig iron price by INR 800/MT (USD 13/MT) for Oct’14, with an additional discount of INR 300/MT (USD 4.9/MT) on purchase of 5,000 MT.
Rashtriya Ispat Nigam Ltd (RINL) is currently offering Pig iron at INR 23,300/MT (USD 382/MT) on ex-plant basis in Vizag, confirmed the company sources. This price correction was expected from RINL as the offers were unchanged from almost 1-month. While, other producers had corrected their prices.
However, at present state of affairs, other Pig iron producers have kept their offers unaltered at INR 22,500-24,000/MT ex-works (USD 368-393/MT) from last 2-3 week’s time.
Domestic Pig iron prices have already corrected to 1-year low and are expected to remain stable in future, as further correction in Pig iron prices will make it difficult for manufacturers to manage their production cost.
At present, market is experiencing Iron ore supply crunch as well as dull demand, which in turn are influencing several companies to run their plant below capacity level. Though, demand is dull, Sponge iron prices seem to be positive owing to Iron ore crisis. Participants believe this shortage will provide some support to Pig iron prices also.
Indian Pig Iron Prices
|
Particular |
City |
State |
Price |
W-o-W Change |
|
Pig iron-Domestic |
Jajpur |
Odisha |
22,500 |
– |
|
Girdih |
Jharkhand |
23,000-23,200 |
200 |
|
|
Raipur |
Chhattisgarh |
24,100 |
-200 |
|
|
Raigarh |
Chhattisgarh |
23,400-23,500 |
– |
|
|
Durgapur |
West Bengal |
23,200-23,300 |
-200 |
|
|
Vizag |
Andhra Pradesh |
23,300 |
-800 |
|
|
Pig iron-Exports |
– |
– |
395* |
-3 |
Basic price in INR/MT
*USD/MT
The last Pig iron export tender had fetched bids at around USD 395/MT FOB Vizag port by a Korean trader.
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