Steel Authority of India Ltd (SAIL) has kept pig iron (steel grade) offers unchanged from its Bhilai Steel Plant (BSP). Prior to this, the company had raised offers on 6th Nov’19 by INR 500/MT (USD 7).
The latest offer floated for a quantity of around 16,000 MT pig iron stands at INR 24,000/MT (USD 335) EXW-Bhilai, Central India.
The fresh offers are firm against last week, however the offered quantity also attracts discount of INR 100-400/MT on bulk purchases, as shared by trade sources.
Market participants believe that, the prices are firm on account of dull response in last week’s offered quantity. Hence in order to improve sales & attract buyers the producer has kept offers unchanged.
For instance, one of the major furnace owner in Raipur confirmed that, yesterday he was getting trade discount through the BSP by around INR 500/MT on above 4,000 MT bookings on immediate payment basis.
Further as per them, sufficient quantity is available for pig iron with BSP.
The current offers through the traders in Raipur assessed at INR 24,100-24,200/MT on FoR basis, excluding GST.
However, prices in other major markets have slightly gained on improved demand following surge in billet prices and the fresh offers for steel grade pig iron is assessed at INR 23,300-23,500/MT ex-Jajpur(Odisha), INR 23,700/MT ex-Jharkhand, INR 24,300-24,500/MT ex-Durgapur, INR 24,200-24,300/MT FoR Raigarh & INR 26,200-26,500/MT FoR Ludhiana.
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