RINL, an Indian government owned Pig iron (basic grade) producer located in Vizag (Andhra Pradesh), has revised its domestic prices of Pig iron for the second time in the month of September.
It is charging Rs 1,000/MT more for one ton of Pig iron and current prices are standing at Rs 24,000/MT (ex works) w.e.f September 13.
Discount Structure remains untouched
Discounts of Rs 500/MT on purchases of Pig iron in big quantities i.e. minimum of 2 rakes (7,600 tonnes) remains unaltered.
On what grounds have Offers Increased?
In a very short span of time i.e. from August 22 till date, RINL has concluded three export deals for a total quantity of 130,000 tonnes at USD 370.70/MT FoB Vizag Port.
Rupee is at 63.5 levels against USD and RINL's prevailing Pig iron export price is USD 370.70/MT FoB.
The total value in Indian currency stands at Rs 23,540 per tonne. The company enjoys an export benefit too. Therefore, 23,540*1.015 = Rs 23,893/MT.
Based on the above calculation, the company has lifted domestic offers.
A Merchant Export Deal Might is to be finalized
RINL might finalize a merchant Pig iron export deal on September 14, with a Kolkata (West Bengal) based buyer.
The total quantity is 30,000 tonnes and is offered at USD 370.70/MT FoB Vizag Port, at which the exporter closed its Pig iron export deal in the last week of August.
RINL's Pig Iron prices gain Rs 1,500/MT in 2 weeks
On September 02, RINL had raised Pig iron offers by Rs 500/MT to Rs 23,000/MT (basic) because expensive imports raised input cost sharply and Rupee was weak at 66-67 levels against US dollar.
Now that RINL has closed 160,000 tonnes Pig iron export deal at USD 370.70-372 since July 24, higher realizations from the same has pushed up domestic prices by Rs 1,000/MT more.
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