Neelanchal Ispat Nigam Ltd has reduced Pig iron offers twice in this month by INR 400/MT (USD 6/MT).
Post continuous price hike by NINL, the country’s largest steel grade Pig iron manufacturer and exporter, has reduced its prices 2nd time due to falling scrap and billet offers across the globe. As per sources, an another major reason behind price correction is poor response in Pig iron export tender, which get expired on 17 May’16.
The company recently has also reduced its billet offers by upto INR 1,500/MT.
In the starting of current month, the company opened Pig iron offers with a fall of INR 400/MT at INR 19,200/MT (USD 290/MT) ex-plant. Today, again corrected prices by INR 400/MT at INR 18,800/MT (USD 284/MT). However, the company has kept discount unchanged at INR 100-300/MT on bulk purchasing.
Pig iron offers by MMTC on behalf of NINL
| N1 Grade Pig Iron Prices | ||
| Quantity | Discount Offered | Offers in INR/MT, ex-Cuttack |
| Upto 500 MT | No discount | 18,800 |
| 500 to 2,000 MT | 100 | 18,700 |
| 2,000 MT and above | 300 | 18,500 |
Offers valid till 3rd Jun’16
Note: Exchange rate:USD 1= INR 66.3
For more terms & specifications please click here
Export tender
MMTC on behalf of NINL had floated an export tender of 40,000 MT Pig iron, which expired on 17 May’16. The company received bid from a single participant and is in the process of negotiating the deal.
Secondary market
Following the price trend by NINL, Pig iron offers in secondary market have also came under pressure due to increased supply by primary/secondary players and weaken global & domestic market sentiments. In a week, offers fell by upto INR 500/MT and in a month by INR 800-1,100/MT.
Current offers for steel grade are assessed at INR 20,700/MT ex-Raipur (central India), INR 18,100-18,200/MT ex-Durgapur, INR 19,000/MT ex-Rourkela (east India), INR 24,000/MT Ludhiana (north India) and INR 21,200/MT Hyderabad (south India).
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