Following the price corrections by NINL by INR 1,400/MT (USD 20), the manufacturers in Central & East India have also follow the suit and cut their prices by INR 500-1,000/MT (USD 7-15).
NINL, known as key price trend setter for Indian domestic pig iron market ; the manufacturers across India wait for NINL offers before they open further in the prices.
The latest offers for Steel grade pig iron are assessed – at INR 20,800-21,000/MT in Durgapur (East India) & INR 23,000-23,500/MT ex-Raipur (Central India). However, during last week it was traded at INR 21,200-21,500/MT ex-Durgapur & INR 24,000-24,300/MT ex-Raipur. Industry participant expect offer may remain firm at this level as international coking coal prices find support.
Global coking coal offers find support on resumption of industrial activity in China post new year holidays in the country. The latest offers for Premium HCC Australian coal are assessed at USD 183-184/MT CFR India which was at USD 181-182/MT in the 1st week of Feb’17.
Steel grade pig iron prices as on 10 Feb’17
| Particular/Delivery | Currency | Taxes | Prices | 1 Week ago | 1 Month ago |
| Ex-Cuttack | INR/MT | ED 12.5%, VAT/CST Extra | 21,400 | 23,000 | 23,000 |
| Ex-Durgapur | INR/MT | ED 12.5%, VAT/CST Extra | 20,900 | 21,900 | 23,500 |
| Ex-Giridih | INR/MT | ED 12.5%, VAT/CST Extra | 21,050 | 22,050 | 23,000 |
| Ex-Hyderabad | INR/MT | Including all, VAT excluded | 23,500 | 23,500 | 23,200 |
| Ex-Ludhiana | INR/MT | Including all, VAT excluded | 26,500 | 27,000 | 28,350 |
| Ex-Raigarh | INR/MT | ED 12.5%, VAT/CST Extra | 22,900 | 24,000 | 23,500 |
| Ex-Raipur | INR/MT | ED 12.5%, VAT/CST Extra | 23,300 | 24,100 | 23,500 |
| Ex-Vizag | INR/MT | ED 12.5%, VAT/CST Extra | 22,200 | 22,200 | 22,200 |
| FOB Brazil | USD/MT | Duty and taxes Extra | 300 | 270 | 295 |
| FOB India | USD/MT | Duty and taxes Extra | 298 | 298 | 292 |
| FOB Russia | USD/MT | Duty and taxes Extra | 285 | 285 | 315 |
| CNF Italy | USD/MT | Duty and taxes extra | 298 | 298 | 330 |
Reference prices
Source: SteelMint Research
Trade Updates
1. Jindal Steel’s in Raigarh further lower prices by INR 800/MT to INR 23,000/MT ex-plant. The plant is also offering discount of INR 200/MT on purchase of above 1,000 MT.
2. Jayaswal Neco Industries in Raipur yet to open the fresh offers. The company’s last offers are assessed at INR 24000-24,200/MT ex-Raipur. Whereas traders offers in the region are at INR 23,000-23,300/MT from outstation.
3. Durgapur based KIC (Kajaria Iron company) and Neo Metaliks have reduced prices to INR 20,800-21,000/MT from last week at INR 22,300-22,500/MT for steel grade material.
4. According to the sources, Tata Metaliks may also cut prices in near term. The company’s offer during Jan’17 for foundry grade material was at INR 26,000/MT.
5. Atibir Industries in Giridih, Jharkhand has again decline prices by INR 500/MT to INR 21,100/MT ex-plant.
6. Tata Steel yet to open fresh prices for Ferroshots & pooled iron. Trade participants stated ”with sharp fall in NINL prices, Tata Steel also have to cut prices in line to get bookings’.
7. Vizag Steel has roll over steel grade prices for Feb’17 at INR 22,400/MT (USD 330) ex-plant.
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