Indian Pig iron prices in secondary market have remained firm in the range of INR 16,700 to 19,000/MT this week. Market participant are waiting for NINL’s new price circular. NINL’s last offers, which expired on 15 Jul’16, were recorded at INR 16,900/MT (USD 250).
Export tender
MMTC on behalf of NINL had floated an export tender of 15,000 MT Pig iron in the last month, which expired on 5 Jul’16. As per sources, only two bidders had participated in the tender and the bid price heard at around USD 240/MT, FoB East Coast of India.
Will NINL further cut offers?
SteelMint in conversation with market participants is getting mixed response regarding NINL’s new price circular for Indian domestic market. Few are hopeful for further price cut by NINL due to declining steel prices in the domestic market. While, others are anticipating prices to remain firm for the rest of the month, as prices have already touched bottom line.
Trade highlights
1. Jindal Steel kept offers unchanged to INR 17,000/MT ex-plant, Raigarh. The plant in the current month has reduced offers by upto INR 1,000/MT.
2. Jayaswal Neco Industries offers are heard at INR 17,800/MT ex-plant, Raipur. However as per buyers, Monnet Ispat is offering the same grade material at INR 17,600/MT, FoR Raipur.
3. Atibir Industries offers stable at INR 17,100/MT ex-Giridih, Jharkhand.
4. RSP’s next tender details yet not confirmed. The company concluded last tender of 6,100 MT Pig iron at INR 15,500/MT. However, other manufacturers in the place are offering the material at INR 16,000/MT ex-plant.
5. Durgapur based Neo Metaliks, Kajaria Iron and Jai Balaji Industries kept offers unchanged at INR 16,700-16,800/MT. A smelter mentioned, around 600 MT Pig iron purchased at the price of INR 16,600/MT yesterday.
6. Billet manufacturers reported, Sesa Goa and few other manufacturers in south India have increased offers by INR 200/MT to INR 18,000/MT, FoR Hyderabad (including CST & freight).
Indian Pig iron prices as on 19 Jul’16
| Particular/Delivery | Prices | W-o-W | M-o-M | D-o-D |
| Ex-Cuttack | 16,900 | 0 | -1,000 | -2,700 |
| Ex-Durgapur | 16,700 | -50 | -550 | -2,700 |
| Ex-Giridih | 17,050 | 0 | -500 | -2,100 |
| Ex-Hyderabad | 18,000 | +100 | -750 | -2,600 |
| Ex-Ludhiana | 22,000 | +500 | 0 | -2,925 |
| Ex-Raigarh | 17,000 | -250 | -1,850 | -3,950 |
| Ex-Raipur | 17,800 | 0 | -1,200 | -2,875 |
| Ex-Rourkela | 15,800 | +300 | -1,275 | -4,200 |
| Ex-Vizag | 19,000 | -250 | -500 | 0 |
Prices in INR/MT
Source: SteelMint Research
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