Steel Authority of India Ltd (SAIL) has reportedly increased Pig iron supplies to domestic market post commissioning of their blast furnace in Burnpur (West Bengal). Increased Pig iron supply by SAIL and lower prices in global market comes as a major threat for merchant Pig iron manufacturers.
Current offer for Pig iron at Durgapur are in the range of INR 19,000-19,500/MT ex- Durgapur.
After the start of new furnace in IISCO (SAIL), the plant was heard dealing at very attractive rates. On this a Pig iron trader at Durgapur shared,“IISCO is heard to have settled a deal of 2 rakes (7400 MT) of Pig iron at INR 18,200-18550/MT for off- grade material.”
Prime grade also named as IISCO grade material offered are at INR 19,200/MT, ex-Plant.
On the other hand, TATA Metaliks, who is a premier producer of foundry grade Pig Iron, is selling steel grade Pig iron, which is assessed in the range of INR 19,000-19,500/MT, ex- Durgapur.
While other merchant Pig iron manufacturers in West Bengal are offering Steel grade at INR 19,300-19,500/MT (ex-Durgapur).
Foundry Grade Pig Iron Prices down
In case of Foundry grade Pig iron, Tata Metaliks reduced Pig iron offers by INR 1,000/MT for March delivery at INR 24,000/MT (ex-works). Other major manufacurers at Durgapur were heard selling at INR 22,500-23,000/MT (ex-Durgapur).
In outlook, though prices of Primary manufacturers have declined, the market in near future is expected to stabilize.
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