Neelachal Ispat Nigam Ltd (NINL), India’s largest and state owned steel grade pig iron manufacturer & exporter has again reduced pig iron prices for steel by INR 400/MT (USD 6) & Foundry grade by around INR 500/MT(USD 7.5). Prior to this the company had cut prices on 5th June by INR 1,100/MT (USD 16).
As per price circular, the latest offers for Steel (N1) grade are at INR 28,500/MT (USD 419) & Foundry (N2) grade at INR 29,500/MT (USD 434); prices are basic, ex-Cuttack, East India. Bulk purchase discounts remained unaltered in the range of INR 100-400/MT.
Industry participants believed that – due to increased availability of material on poor response in export tender, the company has forced to cut prices. Also slump in domestic steel prices another key factor for further price reduction by NINL.
What May Happen
Market participants assuming that, with the further price cut by NINL, the private pig iron producer in Indian market to come under pressure which may result gradual fall in prices near term.
— The latest price assessment for Steel grade Pig iron stood at INR 29,600-30,000/MT ex-Raipur (Central India) & INR 29,300-29,700/MT ex-Durgapur (East region).
— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 375-385/MT FoB Brazil and USD 385-390/MT FoB Black sea.
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