Neelachal Ispat Nigam Limted (NINL) has again increase its offers for both Steel & Foundry grade Pig iron by INR 1,500/MT (USD 22). Prior to this the company had raised prices twice by INR 500/MT in Dec’16.
Current offers for Steel grade (N1) material at INR 23,000/MT (USD 338) & Foundry grade at INR 23,500/MT (USD 345) ex-Cuttack, Odisha (East India). The company is also offering discount on bulk purchase for Steel grade up to INR 400/MT & Foundry by INR 200/MT.
According to the market participants, the company has increased prices due to healthy bookings in the last price circular of around 40,000 MT and better export demand.
In the last month that is Dec’16, the plant has successfully concluded export deals of around 1,10,000 MT at an average price of USD 275-292/MT FOB East Coast, India. In the current month another export tender is being floated by company for sale about 15,000-30,000 MT pig iron, which bid date is going to expire on 25th Jan’17.
NINL Price Circular click here
Secondary market
During the last week, renowned manufacturers in Raipur & Durgapur have also increased prices by around INR 500/MT. Offers increased in line with strong demand amid anticipation of further hike in prices by NINL.
It seems that recent sharp hike by NINL prices will have immediate effect on price of other producers.
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