Indian pig iron producers make first price cut after 5 weeks as Neelachal Ispat resumes production.
Neelachal Ispat Nigam Ltd (NINL) promoted jointly by the Odisha government and MMTC Ltd has cut pig iron prices by INR 1,000/MT(USD 15). Current offers stand at INR 30,000/MT (USD 447) for steel grade. NINL is the largest merchant supplier of steel grade pig iron in India.
The steel company has fired up its blast furnace which was closed for last four months owing to capital repair work. Company plans to operate the furnace at 100 per cent capacity, compared to 50-55 per cent previously. The blast furnace has a capacity to churn out 1.1 million tonnes of hot metal per year, which is about 3,500 tonnes of hot metal per day.
NINL pig iron production in FY18 was recorded at around 410,000 to 420,000 MT, where as Indian sale-able pig iron production (Steel and Foundry) recorded at 9,258,000 MT.
Private Produces Cut Prices
The private pig iron producers based in eastern region of India have also reduced prices by around INR 500-800/MT. Current offers stand at INR 32,000-32,300/MT (Ex-Mill) in Durgapur. This price cut has come after a period of 5 weeks. Indian pig iron prices increased by INR 8,000/MT in last 5 months.
Trade Report
— Neo Metaliks based in Durgapur has reduced steel grade pig iron prices to INR 32,200-32,400/MT against last week offers of INR 32,800-33,000/MT ex-plant.
— Bokaro based Electro Steel has reported latest offers for steel grade pig iron at INR 32,200/MT which was last traded at close to INR 32,500/MT ex-plant.
–RSP (Rourkela Steel Plant) tender held in last week was concluded at INR 30,200/MT.
— No pig iron export deal reported from India but buyers expectation stand at USD 360-365/MT FOB India.
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