Neelachal Ispat offers Pig iron at INR 19,200-19,400/MT (ex-Cuttack).
Neelachal Ispat is offering N1 grade (Si Up to 1.24%) Pig iron to the domestic market at INR 19,400/MT (ex-Cuttack) for February month, with a discount of INR 200/MT on bulk purchase.
The company has recently opened N2 grade (Si 1.25-1.79%) Pig iron at the same levels of INR 19,400/MT (ex-Cuttack). Earlier, NINL use to maintain gap of around INR 500-1,000/MT between the two grades, but looking at the tensed market, the price gap gradually reduced. Presently, the company is offering both the grade of Pig iron at INR 19,400/MT.
However, NINL is currently on a relax mood with no great stock pressure as it has closed two export shipment recently with STX Corporation & MTPL.
Indian Major Pig Iron Market this Week
Indian Pig iron market stabilizes for a while. On a contrary, declining Iron ore prices in the domestic market is providing cushion to Pig iron manufacturers to reduce their offers if required. Currently, offers are in the range of INR 19,500-21,000/MT (ex-works).
Unlike other market, Pig iron prices in Durgapur has witnessed a sharp fall of INR 500/MT in a week’s time. Market participants here are blaming low-priced sale of Pig iron by Neelachal Ispat (NINL) through domestic tender as a prime reason for this pressure. NINL has recently sold a lot of 21,000 MT Pig iron at INR 18,700/MT (ex-Cuttack) to a trader through an open tender. Buyers in the domestic market are now treating it as a benchmark for buying and for further negotiation of Pig iron.
On the other hand, manufacturers based in Raigarh & Vizag are describing this period as crucial time to take any decision (financial year end). Therefore, they have not yet decided the fresh offers for market.
Vizag Steel’s previous export tender for 30,000 MT Pig iron had canceled owing to low-bids. This may also become a reason for the company to worry on stock pressure and pricing.
Similarly, market in North is also quite depressed that a trader in Ludhiana was sharing, “People here are even selling at a loss of INR 100-200/MT to just get rid to stock piles. Currently, Steel grade Pig iron in Ludhiana is being traded at INR 25,800-26,000/MT (FoR prices including excise).”
Declining Imported Scrap Prices – A threat to Domestic Pig Iron
Imported Scrap market is currently a complete buyers’ market. Current offers floating for imported Scrap (HMS 1&2) are in the range of USD 280-285/MT (INR 17,300-17,600/MT), CFR India. Here, when Pig iron and Scrap are treated as equivalent in realization, the price gap between them is becoming a major reason for shift in interest.
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