RINL, one of the largest state-owned Pig iron producer & exporter, has reduced its prices in the domestic market for September deliveries.
RINL is currently offering Steel grade Pig iron at INR 24,100/MT ex-Vizag, with a price correction of INR 500/MT. Company was previously offering material at INR 24,600/MT from last two months.
RINL’s prices have corrected in line with other manufacturers, who have reduced their offers by upto INR 2,000/MT in last two months. Current offers for Pig iron are in the range of INR 22,500-24,500/MT ex-works.
Currently, Raigarh manufacturers have also reduced their price by INR 300/MT to INR 23,700/MT in the domestic market. One of participants mentioned, ”Pooled iron is emerging as new threat in central India’s Pig iron market.”
It was heard that Pooled iron in bulk quantity is in transit to Chhattisgarh, which is likely to be landed at around INR 23,000-23,500/MT to Raigarh/Raipur (offers at INR 20,200-20,500/MT ex-Tatanagar). Whereas, Pig iron at Raipur is being offered at INR 24,600/MT (ex-works).
Though, Pooled iron is sub standard, dull market with blocked capital has made Indian manufacturers to prefer Pooled iron over Pig iron. It was heard from the manufacturers that realization from Pooled iron is around 92%, which is almost 3-4% lower than Pig iron. But, the price difference between these two products is around 16-17%. Perhaps, manufacturers choose sacrificing recovery over price.
Market in Durgapur seems to be stable at INR 23,500/MT this week. It was reported that only a few manufacturers are offering material in the market owing to Iron ore crisis and dull demand.
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