Steel Authority of India Ltd (SAIL) has cut pig iron offers from its Bhilai Steel Plant (BSP) based in Central India, SteelMint learned from market sources.
The latest offers for Steel (basic) grade pig iron heard at around INR 27,800-28,000/MT (USD 395-398) as against last month (Dec’18) at INR 29,100-29,500/MT (USD 413-419), ex-plant & excluding GST. These prices attract further discount of INR 100-200/MT on booking of over 500 MT, sources told SteelMint.
Prices have dropped in line with falling billet prices in domestic market and lower offers by other private and public sector pig iron producers. It is to be noted that Neelachal Ispat Nigam Ltd (NINL) has recently cut their prices by INR 500/MT (USD 7) for domestic buyers.
The landed cost of NINL’s pig iron to Raipur is at about INR 28,200-28,400/MT and now post the price cuts by SAIL the landed cost of BSP pig iron to Raipur based furnaces would be around INR 28,300-28,500/MT, excluding GST.
It seems the price competitiveness may increase further and this may result further price corrections in coming days.
It should be noted that the hot metal productions of major mills significant moved up, while the sales is not upto the mark, leading to constant fall in prices.
SAIL is India’s largest steel producer in terms of capacity with an annual installed capacity of about 21 MnT. Meanwhile in context to Pig iron NINL is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.
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