Neelachal Ispat Nigam Limited (NINL), India’s largest and state owned Pig iron manufacturer, has increased its offer by INR 500/MT (USD 8). Current offers for steel grade (N1) are assessed at INR 16,400/MT (USD 245) on ex-plant basis. The company is offering a bulk discount of INR 400/MT on above purchase of 6,000 MT.
Indian Pig iron prices have increased due to firm demand from export market, which is a result of higher scrap prices. Indian export has increased in last two months. Four bulk shipments have been made during Jul’16 and Aug’16 at an average price of USD 235-340/MT, FoB India.
Pig iron prices are also being supported by sharp increase in coking coal prices in global market, which are currently seen at USD 120/MT, FoB Australia against USD 100/MT in Jul’16.
Steel grade Pig iron offers as on 24 Aug’16 (Week 35)
| Particular/Delivery | Currency | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | INR/MT | 16,400 | + 500 | + 150 | – 2,100 |
| Ex-Durgapur | INR/MT | 16,800 | + 450 | + 350 | – 950 |
| Ex-Giridih | INR/MT | 16,100 | – 400 | – 900 | – 2,000 |
| Ex-Hyderabad# | INR/MT | 18,400 | – 50 | – 100 | – 2,150 |
| Ex-Ludhiana# | INR/MT | 21,000 | – 650 | – 500 | – 2,600 |
| Ex-Raigarh | INR/MT | 16,800 | 0 | + 50 | – 3,200 |
| Ex-Raipur | INR/MT | 17,200 | + 50 | – 100 | – 3,350 |
| Ex-Rourkela | INR/MT | 15,750 | 0 | + 50 | -2650 |
| Ex-Vizag | INR/MT | 17,000 | 0 | – 2,000 | – |
| FOB Brazil | USD/MT | $235 | 0 | 0 | – 35 |
| FOB India | USD/MT | $240 | + 4 | – 2 | – 27 |
| FOB Russia | USD/MT | $230 | 0 | 0 | -37 |
Basic prices, # FoR & Including freight & CST
Source: SteelMint Research
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