In the week, private Pig iron manufacturers in Central & East regions have slightly reduced their prices by INR 200-400/MT (USD 3-6) due to limited trades and falling billet prices. However, the industry is waiting for NINL’s (Neelachal Ispat Nigam Ltd) price circular, which is due on 15th June 2018 for further direction.
NINL is India’s largest merchant steel grade pig iron manufacturer. NINL had reduced its prices by INR 1,100/MT (USD 16) in last circular, which was floated on 05th Jun’18 and the offers were at INR 28,500-28,900/MT (USD 418-425) ex-mill.
Latest offers by private producers in East India for steel grade pig iron (Si upto 1.5%) are assessed at INR 29,000-29,500/MT (USD 425-433) & in Central region at INR 29,500-29,800/MT (USD 433-437) ex-works & excluding of GST at 18%. Where as latest export price assessment stood at USD 385-390/MT, FOB India.
Industry participants stated that, “inquiries from the stockiest and users are limited and markets waiting for NINL prices which seems to decline slightly due to company’s increased production and average demand. At the same time the producer also unable to fetch its export bookings due to low bids in tenders than they expected.”
It should be noted that MMTC on behalf of NINL has floated export tender twice to sale 40,000 MT Pig iron, but the both time the tenders got cancelled due to unmatched bid & selling prices. The bid price by the sources were reported were around USD 386-391/MT, however the company’s interest was to conclude tender was not less than USD 400/MT, FoB India.
Rashtriya Ispat Nigam Limited (RINL) had also re-scheduled its 15,000 MT basic grade pig iron export tender on 14th June due to low bids and the bid due date is expiring today i.e. 20th Jun’18.
Trade Highlights
— The suppliers in Raipur offered Steel grade Pig iron at INR 29,700-29,800/MT which was last week offered at around INR 30,000/MT.
— Jindal Steel offers reported – Pooled iron at INR 27,500/MT, Granulated Pig iron (Panther shots) at INR 28,500/MT ex-plant, Odisha & Steel grade Pig iron at INR 29,500-29,600/MT ex-plant, Raigarh.
— Neo Metaliks in Durgapur – West Bengal has kept offers unaltered for Pig iron and are assessed at INR 29,600-29,700/MT(steel grade) ex-plant, trade activities are weak at these offers; an official reported.
— Electro Steel based in Bokaro sold about 600 MT steel grade Pig iron during last couple of days at INR 29,700/MT FoR Durgapur. On ex-plant basis, the offers are reported at around INR 29,400/MT.
— Ludhiana, North India based trade participants reported the latest offers for steel grade are at around INR 31,500-31,700/MT and Foundry grade at INR 33,500-33,800/MT FoR and excluding 18% GST.
— South India – Prices remain firm and are assessed at INR 30,000-30,500/MT ex-works Vizag/Hyderabad.
— SteelMint’s Pig iron export price assessment stood at USD 385-395/MT FoB India, USD 375-385/MT FoB Brazil and USD 385-390/MT FoB Black sea.
Leave a Reply