VIzag Steel has increased base price for Pig iron and reduced discount rates.
Vizag Steel, also known as Rashtriya Ispat Nignam Ltd (RINL), has increased steel grade Pig iron prices by INR 600/MT to INR 16,800/MT, ex-Vizag. However, the company has reduced discount by around INR 400/MT against previous offers; creating an effective impact (increase) of INR 1,000/MT on the buyers.
Basic grade Pig iron offered by Vizag Steel as on 3 Feb’16
| Month | Base Rates (INR/MT) | Discounts* (INR/MT) | Discounted Price (INR/MT) |
| Jan’16 | 16,200 | 1,200 | 15,000 |
| Feb’16 | 16,800 | 800 | 16,000 |
| Change | + 600 | – 400 | + 1,000 |
*on purchase of above 15,000 MT
Sources
Anticipated announcement of MIP has created unusual excitement in the market. Indian steel prices are purely sentiments driven right now. Others primary Pig iron producers like NINL and SAIL had raised their offers by INR 800-1,000/MT in the later Jan’16. Current offers of Pig iron by primary manufacturers are hovering in the range of INR 15,900-16,700/MT, ex-plants.
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