RINL reduces domestic offers for Pig iron by INR 200/MT (USD 3.1) for May’15 deliveries.
The company is offering Steel grade Pig iron at INR 19,000/MT ex- Vizag, with a price cut of INR 200/MT. It previously offered Pig iron at INR 19,200/MT for the month of Apr’15.
On the other hand, result of RINL’s export tender for 30,000 MT Pig iron is yet to be finalized. The company received export bids at around USD 250/MT, FoB Vizag, by Prime Carbon GmbH.
Two large Manufacturers cut Prices last Week
Neelachal Ispat Nigam Ltd (NINL) & Steel Authority of India Ltd (SAIL), RSP also cut Pig iron offers by large, offering at INR 17,500-18,000/MT, ex-works last week.
NINL for the month of May’15, has slashed prices by INR 700/MT. Current offers for Steel grade (N1 grade) are at INR 17,700/MT on ex-Cuttack basis with an additional quantity discount of INR 200/MT for purchase of more than 7,000 MT.
Whereas, SAIL (RSP) has cut offers for Steel grade Pig iron to INR 17,900/MT (by Road) & INR 18,000/MT (by Rail) from INR 20,100/MT (base-price), ex-Rourkela, with additional discount of INR 500/MT on purchase of more than 10,500 MT. Total quantity offered by SAIL is 75,000 MT.
Offers by Secondary Manufacturers also slide this Week
Secondary manufacturers based in Durgapur were heard to have offering Pig iron at a reduced price of INR 18,600-18,800/MT, ex-Durgapur; noticing a fall of INR 200-400/MT.
On the other hand, Tata Metalliks had announced a fresh open offers for low Silicon Pig iron at an increased price of INR 20,800/MT. Currently, the market is subdued and it would be difficult for the company to continue offering at higher levels.
A trader based in Durgapur said,“Market is so uninspiring. Though the prices have fallen sharply, buyers are expecting it to touch INR 18,400-18,500/MT.”
Pig iron Prices as on 4 may’15
| Particulars | Delivery | Prices | W-o-W |
| Domestic | Ex-Cuttack | INR 17,500-17,700/MT | -700 |
| Ex-Durgapur | INR 18,700/MT | -200 | |
| Ex-Giridih | INR 18,200/MT | -300 | |
| Ex-Raigarh | INR 19,300/MT | -500 | |
| Ex-Raipur | INR 20,000/MT | -500 | |
| Ex-Rourkela | INR 17,500-17,900/MT | -700 | |
| Ex-Vizag | INR 19,000/MT | -200 | |
| Ex-Hyderabad | INR 21,900/MT | 0 | |
| Ex-Ludhiana | INR 24,000*/MT | -500 | |
| Global | FOB India | USD 265/MT | + 10 |
| FOB Black Sea | USD 250-255/MT | 0 | |
| FOB Brazil | USD 265-268/MT | 0 |
*Inclusive of ED
Source: SteelMint Research
Pooled Iron Updates
Tata Steel’s last auction of pooled iron was settled at INR 15,600/MT, ex-Jameshpur whereas, SAIL (IISCO) is to hold auction today. IISCO’s last prices for pooled iron were assessed at INR 16,200/MT ex-works, Burnpur (West Bengal).
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