Neelachal Ispat Nigam Limited (NINL), a state-owned company and the largest Pig iron manufacturer of India, has cut Pig iron offers by INR 600/MT owing to falling prices in the global market.
NINL is offering around 15,000 MT Pig iron at INR 18,800/MT (USD 303/MT) ex-plant for N2 grade (Si: 1.25-1.79%), with an additional bulk discount of upto INR 700/MT.
| Purchase Quantity | N2 Price |
Discount |
| Below 3,500 MT | 18,800 | No Discount |
| 3,500 to 6,999 MT | 18,600 | 200 |
| 7,000 to 10,499 MT | 18,400 | 400 |
| 10,500 to 13,999 MT | 18,200 | 600 |
| 14,000 MT and above | 18,100 | 700 |
Prices in INR/MT
Also, NINL is offering N1 grade (Si upto 1.24%) Pig iron to the domestic market at INR 19,400/MT (ex-Cuttack) with a discount of INR 200/MT on bulk purchase.
Participants are of a view that declining Pig iron prices in global market is the major reason for the price cut by the company. NINL’s two export tenders cumulative of about 80,000 MT is due on 26 Feb’15 and 10 Mar’15.
“With the Pig iron trading at around USD 280 FOB Black sea level, we cannot expect Indian exporters to fetch more than this. Indian manufacturers will not prefer to trade on such low prices, especially when the domestic realizations are better,” said a Pig iron global trader.
Last month, NINL had auctioned about 50,000 MT Pig iron in the domestic market on various lots. The company received bid at INR 18,700/MT for the biggest lot that had about 21,000 MT Pig iron, for the smaller lots of size 100-200 MT bids were close to about INR 19,900-20,000/MT (ex-plant). While, the remaining quantity is now offered by the company through open sale.
Trade Log
- Chhattisgarh based manufacturers are offering steel grade Pig iron at INR 20,800-21,500/MT ex-plant
- Pig iron prices in Durgapur were assessed at INR 19,300-19,500/MT (ex- Works)
- Pig iron prices in Hyderabad at INR 21,900-22,000/MT
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