Vizag Steel, a south India based largest Pig iron manufacturer, has lower down its Pig iron prices by INR 500/MT (USD 8).
Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL), has reduced its prices, post increasing since Jan’16. In the last month, the company has increased offers by INR 1,200/MT (USD 18).
Current offers for steel grade are assessed at INR 19,000/MT (USD 285/MT) ex-plant, Vizag (excluding Excise and Taxes) and INR 21,375/MT (including 12.5% ED) for Jul’16 deliveries.
Since May’16, Indian primary & secondary Pig iron manufacturers are continuously declining prices due to sluggish demand and increased supply of material by both the players. During the current month, Indian steel grade offers fell by INR 500-1,500/MT.
NINL likely to keep firm offers- Sources
Neelanchal Ispat Nigam Ltd (NINL), a state owned and India’s largest Pig iron manufacturer, has reduced Pig iron offers in the starting of current month by INR 1,000/MT (USD 15/MT). The plants’ price cicullar is going to expire today i.e. 15 Jul’16.
Trade sources are assuming, the company is likely to keep unchanged offers for rest of the month due to sufficient deals at current offers and bottom out prices. They further added now the manufacturers are eyeing to maintain offers looking at higher production cost and lower selling prices. Coal prices in the domestic & global market are increasing, which is key raw material to produce Pig iron.
Trade Hightlights
1. Jindal Steel further lower Pig iron offers to INR 17,000/MT ex-plant, Raigarh.
2. Jayaswal Neco Industries offers unchanged to INR 17,800-17,900/MT – Sources.
3. Atibir Industries offers stable to INR 17,100/MT ex-Giridih, Jharkhand.
4. Tata Steel’s pooled iron offers unchanged to INR 14,700-14,800/MT ex-Kalinganagar plant.
5. Traders mentioned, IISCO (SAIL’s unit) concluded few deals around 2 rakes at the last price of INR 16,100-16,200/MT ex-Burnpur.
6. Durgapur based smelters mentioned, TATA ferro-shots Pig iron is being purchased at INR 16,700-16,800/MT (delivered to plant and excluding all taxes).
7. RSP tender for 6,100 MT Pig iron concldued at INR 15,500/MT in the last week.
8. Durgapur based merchant Pig iron sellers namely Neo Metaliks, Kajaria Iron and Jai Balaji Industries have keep unchanged offers this week to INR 16,800/MT.
9. Sesa Goa and few other manufacturers in South India have down offers by INR 200/MT to INR 17,800/MT, FoR Hyderabad (including CST & freight), Billet manufacturers reported.
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