The Private pig iron manufacturers based in eastern India – Jharkhand & West Bengal are yet to revise offers as at current offers deals are reported to be limited due to recent price reduction by NINL.
Neelachal Ispat Nigam Limited (NINL) is India’s largest pig iron producer and known as price trend setter on 18th Dec’18 has reduced steel grade prices by INR 600/MT (USD 9).
Market expects similar price corrections to be made through the private producers based in eastern India. Meanwhile it is also learned that at current offers by NINL, the stockiest have not booked major quantities owing to falling steel prices which in turn led to poor demand for pig iron too with the suppliers.
One of the stockiest in North India – Ludhiana stated “at current offers by NINL there is no viability as landed cost of NINL pig iron will be approximately at INR 30,600-30,800/MT, although currently trades are happening at INR 30,800-31,000/MT and we have sufficient stock for coming couple of weeks.
The fresh purchase is expected to be made either if producer further cut prices or local demand gains momentum” he added.
Meanwhile, the Central India based traders stated, bookings to be made as per necessity as buyers are cautious for future bookings. Also as NINL didn’t receive aggressive response in export tender, they may be forced to further cut prices, if market trends remain bearish in Indian domestic & global market.
Notably, MMTC on behalf of NINL has re-issued export tender of 30,000 MT pig iron due to poor response in last tender as there was no aggressive bidders. The company’s bid due is for export tender is 8th Jan’19 & domestic price circular is expiring on 21st Dec’18.
The current offers for low silicon (steel grade) pig iron hovering at INR 29,000-29,200/MT in Raipur & INR 28,600-28,800/MT in Raigarh, Central India. Prices for same grade in Eastern region stood at INR 29,000-29,500/MT ex-Durgapur & INR 28,600-29,000/MT ex-Jharkhand.
In northern India the latest reduced prices by stockiest reported for Steel grade at INR 30,800-31,000/MT & Foundry around INR 33,000/MT FoR Ludhiana & excluding GST.
Highlights
— Neo Metaliks based in Durgapur has resumed operation which was halt since a month due to maintenance works in blast furnace. As per officials, production to ramp up and offers for foundry grade reported at INR 32,600-32,700/MT ex-plant.
— Jindal Steels offer for Steel grade pig iron at INR 28,800/MT ex-plant Raigarh & for Panther shots (Granulated pig iron) at INR 27,800/MT & Pooled iron at INR 26,800/MT ex-plant, Odisha.
— Atibir Industries in Giridih, Jharkhand reported offers for steel grade pig iron at INR 29,000/MT ex-plant & INR 29,500/MT FoR Durgapur.
— Bokaro based Electrosteels offering steel grade at INR 28,600-28,800/MT ex-plant & INR 29,200-29,300/MT FoR Durgapur.
— Vizag Steel (RINL) offers for Steel grade Pig iron evaluated at INR 30,000/MT ex-plant, Vizag, southern India.
— Australian Seaborne premium hard coking coal prices slipped by USD 2.50/MT as Chinese steel margins decline. Latest prices for the Premium HCC grade for Indian buyers assessed at USD 240.90/MT, CNF.
— SteelMint’s export price assessment for basic grade Pig iron stood at USD 365-370/MT FOB India, USD 345-355/MT FOB Black Sea, USD 340-345/MT FOB Brazil & USD 365-370/MT CNF Italy.
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