India- Neelachal Ispat may Undergo Maintenance by Month End

India’s largest merchant steel grade pig iron manufacturer, Neelachal Ispat Nigam Ltd (NINL) may undergo maintenance by month end, according to sources. Production will be stalled for a period of about 2 months.

“This is a capital repair, which every blast furnace undergoes once in 14-15 years of operations. Operations will be shut for a period of 60 days.” said a source close to Neelachal Ispat Nigam Ltd.

How will it impact Indian Pig iron supply

India’s annual requirement of steel grade pig iron is roughly 5-6 MnT, out of which NINL contributes around 10%.

1. NINL produces about 50,000-60,000 MT of steel grade pig iron per month.

2. NINL exported about 190,000 MT pig iron during Jan-Aug 2017.

3. Prices may not sky rocket as Tata Steel and Jindal Steel are increasing supplies of pooled iron and granulated pig iron, which is a alternative of pig iron.

4. Other private merchant pig iron manufacturers may increase their export offers.

NINL Dispatch in Indian Market

Qty in MT
Source: SteelMint Research