India: Neelachal Ispat Stops Offering Pig Iron in Domestic Market amid Maintenance

India’s largest merchant steel grade pig iron manufacturer, Neelachal Ispat Nigam Ltd (NINL) has stopped offering steel grade pig iron in domestic market as its blast furnace is due for capital maintenance in the month of October 2017.

Production will be stalled for a period of about 45 -60 days once blast furnace is switched off. Capital repair is a maintenance activity which every blast furnace undergoes once in 14-15 years of operations.

“Plant will soon go for a maintenance repair once pending orders are delivered. We are not taking fresh bookings.” said a source close to this matter.

Notably, NINL has not issued any price circular for steel grade pig iron since mid of Sept’17. Last domestic circular was issued on 7th Sept which expired on 14th Sept’17, Company had last concluded export deal during mid of Sept’17 for Oct delivery.

NINL’s, last price offers in domestic market was at INR 25,000-25,250/MT (USD 385-389) and export deal was settled at USD 380/MT FoB India.

Indian Pig iron Trade Wise

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

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 and marked India’s largest pig iron exporter in CY17 (till Aug’17).

3. Pig iron prices in domestic market has dropped owing to falling billet prices.

4. Jindal steel is offering granulated pig iron at INR 23,200-23,400/MT (Ex-Mill, USD 358) and pooled iron at INR 22,200/MT (Ex-Mill, USD 341).

5. Bokaro based pig iron manufacturer is offering steel grade at INR 23,000/t (Ex-Mill, USD 353).

6. SAIL’s IISCO is negotiating for one rake (3200 tonnes) of steel grade pig iron at around INR 22,500/MT (Ex-mill) for North India. Last deal was reported at INR 23,400/MT (Ex-mill).

NINL Dispatch in Indian Market

Qty in MT
Source: SteelMint Research