Rashtriya Ispat Nigam Limited (RINL), a state owned producer of Basic grade Pig iron based in Vizag (Andhra Pradesh), has raised domestic offers by Rs 500/MT, w.e.f September 01.
The company is now charging Rs 23,000 (ex works Vizag) for one ton of Pig iron; the material was being offered at Rs 22,500/MT in the month of August.
RINL maintains the discount structure of Rs 500/MT for buyers interested to lift 8,000 tonnes or above of Pig iron at one time.
A Rourkela based Pig iron (Basic grade) producer has increased offers by Rs 1,500/MT to Rs 23,500/MT (ex works).
Its cost of importing Coke, which accounts for 80% of the cost to manufacture Pig iron, has gone up by around Rs 2,500/MT.
Though, Pig iron prices are standing on the higher side, they are still below the input cost and manufacturers across Indian market, continue to make losses.
It is quite difficult to say if prices will sustain at current levels, as on one side, Rupee is still weak at 66 level against US dollar making imports of the most important raw
material in Pig iron production, quite costly.
On the other side, prices of Sponge iron, semi finished and finished material have taken the reverse trend and corrected by Rs 200-700/MT today.
NINL (Neelachal Ispat Nigam Limited) is likely to open its domestic Pig iron prices in the current week itself.
In the present day, it is not offering its material for domestic sales due to low stock position.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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