Neelachal Ispat Nigam Ltd (NINL) has further increased its Steel grade pig iron prices by INR 600/MT (USD 9) despite low demand. Current offers are at INR 21,500/MT (USD 320) ex-works, excluding excise duty and VAT.
Sources mention that prices have been increased, as company has pending deliveries for last month. They further mentioned that the plant has limited stock at the moment.
Volatility in steel prices: Steel prices in domestic market are quite volatile and it is expected that people will not take position at these levels. Billet prices have corrected INR 500-1,000 /MT in last one week.
Robust booking of Imported Scrap: Participants also report that there has been robust bookings of imported scrap for which delivery will be in November’16. It is heard that over 6 bulk vessels of scrap have been booked.
It is anticipated that, recent price hike by NINL may not impact offers of secondary pig iron manufacturers.
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