Steel Authority of India Ltd (SAIL), country’s largest steelmaker, offers 75,000 MT of Steel grade Pig iron at a discounted price.
SAIL (RSP) has cut offers for Steel grade Pig iron to INR 17,900/MT from INR 20,100/MT (base-price), ex-works for the month of May’15.
The company is also offering additional discount upto INR 500/MT on quantity purchase of upto 10,500 MT (around 3 rakes). While, RSP in its previous sales (Mar-Apr’15) had offered discounts upto INR 2,000/MT in quantity purchase of upto 14,000 MT (around 4 rakes).
| Quantity Purchase | Discounts Offered | Offers-by Road | Offers- by Rail |
| Up to 3,499 MT | No discount | 17,900 | 18,000 |
| 3,500 to 6,999 MT | 200 | 17,700 | 17,800 |
| 7,000 to 10,999 MT | 400 | 17,500 | 17,600 |
| 10,500 & above | 500 | 17,400 | 17,500 |
1 Rake= 3,500 MT
Neelachal Ispat also cuts Prices by INR 700/MT
Neelachal Ispat Nigam Ltd (NINL), in its recent offer has slashed prices by INR 700/MT. Current offers for Steel grade (N1 grade) are at INR 17,700/MT on ex-Cuttack basis with an additional quantity discount of INR 200/MT for purchase of more than 7,000 MT.
Secondary Manufacturers also react accordingly
Other private manufacturers like in central as well as east India have also been heard to have reduced their offers. A Raigarh based manufacturer is offering Steel grade Pig iron at INR 19,300/MT (ex- works); fall of INR 200-400/MT, W-o-W.
Similarly manufacturers based in West Bengal have reduced their offers by INR 200-400/MT this week, currently at INR 18,600-18,800/MT, ex-works.
Indian Pig Iron Export
Last Pig iron export tender by India (MMTC) was settled at USD 265/MT FoB Paradip Port. The tender of 30,000 MT was awarded to the highest bidder, MTPL after a price revision of USD 10.
Whereas, another Pig iron export tender by Vizag Steel has received bids at USD 250/MT FoB Vizag, which the company is yet to finalize.
Domestic Pig Iron Prices as on 1 May’15
| Delivery Terms | Offers in INR/MT | W-o-W |
| Ex-Cuttack | 17,500-17,700 | – 700 |
| Ex-Rourkela | 17,400-17,900 | -700 |
| Ex-Durgapur | 18,600-18.800 | -300 |
| Ex-Raigarh | 19,200-19,300 | -500 |
| Ex-Vizag | 19,300 | 0 |
Source: SteelMint Research
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