Vizag Steel, also known as RINL, India’s state owned and largest merchant Pig iron manufacturer, has increased discount on Pig iron on the backdrop of rising inventories.
Sources confirmed that the company has increased discount on basic grade pig iron from INR 1,000/MT (USD 15/MT) to INR 2,000/MT (USD 30/MT) for booking more than 10,000 MT.
However, base price has been kept unchanged at INR 17,000/MT (USD 261/MT), ex work. The company is also heard offering discount of INR 1,000/MT (USD 15) on purchase of over 1,000 MT.
It may also be noted that the company has failed to conclude any export deal since Jun’15.
Other Indian markets
Pig iron prices in domestic market have witnessed a fall of around INR 200-500/MT in a week’s time. Offers for steel grade Pig iron is hovering in the range of INR 16,000-17,500/MT, ex-plant.
Some of the market sources shared, SAIL-IISCO, Burnpur has offered Pig iron at INR 15,500/MT, ex-plant. But, deal price could not be confirmed.
Steel grade Pig iron prices as on 4 Nov’15
| Delivery | Prices in INR/MT | Change |
| Ex-Cuttack | 16,400 | 0 |
| Ex-Durgapur | 16,200-16,400 | -200 |
| Ex-Giridih | 16,400 | – 800 |
| Ex-Ludhiana | 21,300-21,400. | – 300 |
| Ex-Raigarh | 17,100 | – 400 |
| Ex-Raipur | 17,600 | – 200 |
| Ex-Rourkela | 16,700 | 0 |
| Ex-Vizag | 17,000 | 0 |
Source: SteelMint Research
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