Nilanchal Ispat Nigam
Limited (NINL), largest producer and
exporter of Pig Iron in country, reduced Steel Grade offers by Rs 300/MT, w.e.f
from 2nd June. Though, no specific reasons have been stated by company
officials.
Steel Grade is being
quoted at Rs 25,400/MT (Basic price) which was previously standing at Rs
25,700/MT.
Market traders
anticipate prices have been cut on sluggish demand and falling prices in
international market.
“NINL has reduced offers to liquidate their
stock and makes bulk of sales altogether as booking order was in good numbers.
But as the entire stock gets sold out, we anticipate price to show some
fluctuation again, may be in a fortnight or so”, said Mr Gaurav Kumar,
Uttam Galva.
RINL (Vizag) raised Steel Grade offers by Rs 300/MT, which
was anticipated to increase by Rs 500/MT. Current price is being quoted at Rs
25,200/MT (Basic), that was at Rs 24,900/MT previously.
According to market
participants, price was hiked eyeing better realisation of exports on rising
dollar, scarcity of the material and expensive raw material.
“RINL quotes its Steel Grade price less by
around Rs 200-300/MT from that of NINL. Though, the freight charges are same at
Rs 1,000, Raipur market consumes more of Vizag Steel material as compared to
that of NINL”, added Mr Kumar.
SAIL is facing unavailability of the material.
In Durgapur,
some of the plants are shut and production has come down owing to expensive and
unavailablility of raw materials. Buying of Steel Grade material is as per
requirement and Foundry Grade is not available.
Sales volume has come
down in Jharkhand. Due to this, some of the induction furnaces remain shut
in Giridih.
Some of the big plants
such as Jayaswal Neco, Mesco Steel and Tata Metaliks, major producers of Foundry Grade, have kept their furnaces shut for
a weeks time on poor demand. It is expected that operations might start after a
couple of weeks.
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