Neelachal Ispat Nigam Ltd (NINL) reduces Pig iron offers by INR 700/MT; allows discounts upto INR 200/MT till 15 May’15.
NINL has currently offered N1 grade (Si content below 1.24%) at INR 17,700/MT ex-Cuttack with additional discounts of upto INR 200/MT. The company previously offered Pig iron at INR 18,400/MT and discounts upto INR 400/MT, which was supposed to expire on 30 Apr’15. Witnessing dull domestic sentiments, the company decided to withdraw the previous circular before time (expire 30 Apr’15) and opened fresh offers at more affordable rates.
The company has made price cuts in line with global prices. Recent export tender of 30,000 MT Pig iron by MMTC (on behalf of NINL) had fetched USD 265/MT, FoB India East coast. This will give NINL a Net Sales Realization (NSR) of around 16,200-16,300/MT on ex-works basis, considering INR at 62.5/USD.
| Quantity Purchase | N1 grade Prices in INR/MT |
Discount in INR/MT |
| Upto 3,499 MT | 17,700 | No Discount |
| 3,500 MT to 6,999 MT | 17,600 | 100 |
| 7,000 MT & above | 17,500 | 200 |
One Rake = 3500 MT
100% advance payment & other conditions applied
Private Manufacturers may cut Prices
Private manufacturers may cut prices in May, looking at NINL’s offers. Recently price cut of INR 200-300/MT was observed in Durgapur, however, other manufacturers based in Central and South India kept offers unchanged.
| Domestic Pig iron Prices as on 28 Apr’15 in INR/MT | ||
| Particulars | Offers | W-o-W Change |
| Ex-Cuttack | INR 17,500-18,000/MT | – 700 |
| Ex-Durgapur | INR 19,000-19,200/MT | – 300 |
| Ex-Raigarh | INR 19,800/MT | 0 |
| Ex-Raipur | INR 20,500/MT | 0 |
| Global Pig iron Prices as on 28 Apr’15 in USD/MT | ||
| FoB India | USD 265/MT | 10 |
| FoB Black sea | USD 250/MT | 5 |
| FoB Brazil | USD 267/MT | -8 |
Source: SteelMint Research
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