Indian pig iron manufacturers remain under pressure amid falling demand and Increase domestic supply. In the current week, prices of steel grade material reported another fall of INR 200-500/MT across India.
The prices fall are assessed in Raipur, Raigarh & Durgapur by INR 200-300/MT. While, in Hyderabad & Ludhiana it corrected approximately by INR 500/MT.
Post corrections, the fresh offers are assessed at INR 22,800-23,100/MT ex-Raipur, INR 22,500-22,700/MT ex-Raigarh, INR 20,600-20,800/MT in Durgapur, INR 26,000/MT FOR Ludhiana & INR 23,000/MT FOR Hyderabad.
During the last week, NINL reduced price giving bearish sentiments in the Indian market. Thus, the renowned manufacturers in the domestic market were reluctant to cut prices in line to NINL offer prices. Presently NINL is on of the largest producer and exporter of pig iron. In FY16 around 0.54 MnT of pig iron was produced by NINL of the total India’s production of 9.6 MnT.
Trade Updates
1. Jindal Steel has again reduced the prices by INR 200/MT to INR 22,700/MT ex-Raigarh. The company is also offering discount of INR 200/MT on bulk quantities purchase.
2. Jayaswal Neco Industries in Raipur yet to declare any fresh offers. Traders in the market are offering Odisha’s pig iron FOR at INR 22,700-23,000/MT. Few local trade also learned at INR 23,100/MT ex-works.
3. A trader reported, KIC (Kajaria Iron company) and Neo Metaliks in Durgapur have reduced prices by INR 200/MT to INR 20,800/MT.
4. Tata Metaliks last offer for foundry grade material was at INR 26,000/MT ex-Kharagpur, West Bengal. Sources from Durgapur mention that the company may reduce offer this week.
5. Atibir Industries in Giridih, has kept prices unaltered for steel grade at INR 21,100/MT ex-plant.
6. Vizag Steel, may re-issue export tenders for Pig iron and billet later this week. In the earlier, the company had received good response in both the tenders but tender awardees failed to submit the bank guarantee (BG) on time. Hence, the company has canceled it.
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