Neelachal Ispat Nigam Limited (NINL), an Indian Government owned and largest Pig iron producer in terms of installed capacity of 0.85 MnTPA, has increased steel grade Pig iron prices by INR 750-800/MT.
With reference to an article dated September 16, SteelMint mentioned that NINL might raise Pig iron (N1 grade) offers and there is no scope for correction in any of the grades, looking at limited quantity available for domestic sales.
This is the second time that the company has raised Pig iron prices in the month of September and in a span of 15 days only.
NINL's Pig iron prices w.e.f Sep 18
Grade Si% Price (INR/MT)
N1 Up to 1.24 23,500 (+750)
N2 1.25-1.79 24,000 (+850)
(Basic Prices; Ex NINL Plant basis)
Prices are valid till September 30.
N1 (steel) – mostly used for export purpose
N2 (steel) & N3 (foundry) – for road dispatches only
Sales of foundry (N3) grade Pig iron with Si 1.8-2.2% are on hold due to no stock available.
NINL's steel (N1) grade Pig iron sales was on hold from August 27-September 04 in order to get rid of the stock available for foundry (N3) grade material.
In the last couple of weeks, Pig iron offers have moved up by INR 1,000-2,050/MT because of increase in the company's cost of production as it is dependent on 100% imported Coke, which accounts for the major share in input cost.
Coke prices have increased to USD 268/MT CFR India and Indian Rupee is at 61 levels against US Dollar.
NINL has offered about 60,000 tonnes of Pig iron for exports purpose, shipment of which will take place in less than 2 month's time, provided the deal is closed.
Though, state controlled Pig iron producers have raised offers sharply this month to pass on the cost to consumers, profit margins are still on the lower side.
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