SteelMint learnt from market participants that Pig iron prices dropped by INR 200-600/MT (USD 3-9) W-o-W in Central & Eastern India. As domestic purchase inquiries for pig iron have presently slowdown to some extent.
As per analysts, domestic Pig iron prices continue to fall as private producers improve supply leading to a strong competition among sellers, is the strongest reason behind price fall.
Further, Industry participants are estimating prices would remain under pressure as domestic supply increased by resumption of Neelachal Ispat (NINL) which is India’s largest Steel grade Pig iron manufacturer. And in the week it was also noted, Neelachal Ispat (NINL) has recorded its highest ever hot metal production on a single day. And produced 3,001 MT of hot metal on 13th May 2018.
The latest offers for Steel grade are evaluated at INR 30,800-31,200/MT ex-Durgapur, INR 30,500-31,000/MT ex-Raipur, INR 29,500-29,600/MT ex-Odisha & INR 30,100-30,500/MT ex-Vizag/Hyderabad. These offers fell by about INR 200-700/MT against last week’s assessment.
Trade Updates:
— MMTC has floated an export tender of 40,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL). The due date for submission of bids is 25 May’18.
— RSP (Rourkela Steel Plant) tender held on 17th May’18 to sell about 4,700 MT steel grade Pig iron. The base price of the tender was at INR 26,600/MT and 4,200 MT quantity have been sold out.
— Durgapur based Neo Metaliks has reported latest offers for steel grade Pig iron at around INR 31,000-31,200/MT & Foundry grade at INR 33,800/MT, ex-plant.
— Bokaro based Electro Steel which produces 25,000 tonnes of steel grade material has offered steel grade Pig iron at around INR 31,000/MT ex-plant.
— Ludhiana, North India based trade participants reported the latest offers for steel grade are at around INR 31,600/MT and Foundry grade at INR 34,600/MT FoR and excluding 18% GST.
— Girdih based Atibir Industries, a Pig iron producer has kept offers firm amid average inquiries. The steel grade trades are reported at INR 31,300-31,500/MT ex-plant & excluding GST.
Steel Grade Pig Iron Prices as on 18th May 2018
| Particular/Delivery | Size, Grade, Origin | Prices | Min | Max | 1W | 1M |
| Ex-Bokaro | Steel Grade | 31,000 | 30,800 | 31,200 | 31,567 | 30,550 |
| Ex-Cuttack | Steel Grade | 29,600 | 29,400 | 29,800 | 29,933 | 29,975 |
| Ex-Durgapur | Steel Grade | 31,000 | 30,800 | 31,200 | 31,667 | 30,975 |
| Ex-Giridih | Steel Grade | 31,000 | 30,800 | 31,200 | 31,633 | 30,800 |
| Ex-Hyderabad | Steel Grade | 30,000 | 29,800 | 30,200 | 30,000 | 29,000 |
| Ex-Ludhiana | Steel Grade | 31,500 | 31,300 | 31,700 | 31,900 | 31,950 |
| Ex-Raigarh | Steel Grade | 30,800 | 30,600 | 31,000 | 31,000 | 30,900 |
| Ex-Raipur | Steel Grade | 30,800 | 30,500 | 31,000 | 31,400 | 31,125 |
| Ex-Vizag | Steel Grade | 30,300 | 30,100 | 30,500 | 30,300 | 28,900 |
Prices in INR/MT & excluding 18% GST
Source: SteelMint Research
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