Vizag Steel, a major Pig iron price trend decider in south India, has steeply reduced its prices by INR 2,000/MT in Jul’16. Last month, the company had cut its offers by INR 500/MT.
Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL), has reduced its prices by INR 2,000/MT to INR 17,000/MT (USD 255) for Aug’16 deliveries. Earlier in Jun’16, the company had made a price correction of INR 500/MT.
In the meantime, NINL (Neelachal Ispat Nigam Ltd) has also plunged down its prices by INR 1,000/MT to INR 15,900/MT (USD 238) ex-plant, Cuttack.
Secondary manufacturers hold offers
Post price corrections by India’s large merchant Pig iron suppliers namely NINL and RINL, offers in secondary market have been remained more or less firm since last 8-10 days. Secondary manufacturers are trading material at INR 16,100-16,300/MT ex-Durgapur, INR 17,100-17,200/MT ex-Raipur, INR 15,700-15,800/MT ex-Rourkela, and INR 16,700-16,800/MT ex-Raigarh.
Sources reported that secondary manufacturers based in east and central India are not looking for major price corrections as trade volumes are firm at current offers. Also, seasonal supply crunch for sponge and scrap has increased Indian smelters’ buying interest for Pig iron.
Plant-wise offers
1. Jindal Steel offers are assessed at INR 16,800/MT ex-plant, Raigarh.
2. Jayaswal Neco Industries offers remain unchanged at INR 17,200/MT ex-plant, Raipur.
3. Atibir Industries has reduced offers to INR 16,500/MT ex-plant, Giridih.
4. As per sources, Durgapur based Neo Metaliks, Jai balaji Steel and KIC offers are seen at INR 16,200-16,300/MT.
5. RSP’s tender this week received higher bid at INR 15,750/NT ex-plant for 2,500 MT Pig iron.
6. Vedanta exported 20,000 MT steel grade material to Bangladesh in Jul’16 at an average price of USD 240/MT, FoB West Coast.
Leave a Reply