Steel Authority of India Ltd (SAIL) has resumed pig iron offers for the domestic market from its central India based Bhilai Steel Plant (BSP).
The company’s offer for basic (steel) grade pig iron is hovering at INR 22,700-800/MT EXW. In addition to it, there is a discount offered of INR 100-300/MT on bulk bookings, as stated by participants. Also, the available stock of the material was assessed at 16,000-18,000 MT.
— Prior to this, last offers by BSP for steel grade pig iron were assessed in the beginning of Mar’20 at around INR 27,500/MT EXW.
— The fresh offer by a Raipur based producer is assessed at INR 23,000-23,200/MT EXW, however through traders the same is offered at INR 22,800-23,000/MT on FoR basis.
— Recent auction held by SAIL’s Rourkela Steel Plant (RSP) received good response as the total offered quantity of 3,000 MT was booked at the price range of INR 21,950-22,150/MT EXW.
— The offers in other parts of India through the private mills stand at INR 22,500-22,700/MT Ex-Raigarh, INR 23,200-23,400/MT Ex-Durgapur, INR 22,800-23,000/MT Ex-Jharkhand & INR 26,200-26,400/MT FoR Ludhiana.
Future outlook
Indian pig iron prices are expected to remain under pressure due to improved supply as most of the primary mills are operational, this is resulting in decent availability of material in the spot market.
In addition to this most of private producers in eastern India are re-heating their blast furnaces and the production is expected to come out-put by week-end, which will further add to the supply in the merchant market.
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