Indian merchant Pig iron manufacturers have raised steel grade prices by upto INR 1,000/MT, following Neelachal Ispat’s recent price hike of INR 700/MT and limited availability in market.
Major reasons cited were material shortage in local markets like Raipur and Durgapur, equivalent FoR price from Cuttack to Durgapur and high turn around time in Raipur. Moreover, price rise of INR 500-800/MT in MS billet during the same period has also supported Pig iron prices.
Steel grade Pig iron prices as on 14 Mar’16
| Particular | Steel grade Pig iron | W-o-W | Billet Price | W-o-W |
| Ex-Cuttack(NINL) | 18,000 | +350 | 21,900^ | +600^ |
| Ex-Durgapur | 19,000 | +900 | 22,450 | +450 |
| Ex-Hyderabad | 18,000 | 0 | 25,600 | +1,100 |
| Ex-Ludhiana | 22,500 | 0 | 26,100* | +100* |
| Ex-Raigarh | 19,800 | NA | 22,700 | +650 |
| Ex-Raipur | 20,250 | +1,050 | 23,200 | +800 |
| Ex-Vizag | 16,800 | 0 | – | – |
Note: ^Jharsuguda; *Mandi Gobindgarh
Basic prices in INR/MT; ED/VAT extra
Source: SteelMint Research
Trade-wise
1. A Raipur based local manufacturer offered Steel grade Pig iron at INR 20,250-20,300/MT. Whereas, FoR price (inclusive tax) from Cuttack is heard to be at INR 19,300-19,500/MT.
2. A Durgapur based local manufacturer offered Steel grade at INR 19,000/MT; similar to landed price of Cuttack to regional plant.
3. Raigarh based furnaces prefer buying at INR 19,300/MT FoR Cuttack.
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