Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL) has increased Pig iron prices by INR 500/MT (upto USD 10/MT ).
Vizag Steel, India’s one of the largest suppliers of Pig iron, has raised prices by INR 500/MT for April deliveries. Current offers for steel grade are assessed at INR 17,300/MT ex-works (excluding Excise and Taxes). The company has kept discount of INR 800/MT on purchase of bulk quantity (12,000 MT) unchanged.
Basic grade Pig iron offered by Vizag Steel for Apr’16
| Month | Base Rates (INR/MT) | Discounts* (INR/MT) | Discounted Price (INR/MT) |
| Jan’16 | 16,200 | 1,200 | 15,000 |
| Feb’16 | 16,800 | 800 | 16,000 |
| Mar’16 | 16,800 | 800 | 16,000 |
| Apr’16 | 17,300 | 800 | 16,500 |
*on purchase of above 12,000 MT
Source: SteelMint Research
Prices up on tight Supply
SteelMint in its last report mentioned that primary pig iron manufacturers may increase prices due to tight supply and rising prices in global market. Market sources have confirmed that prices have increased on account of tight supplies. Sources also confirmed that Vizag Steel has increased its in house consumption of Pig iron. Currently, offers for Pig iron to Hyderabad are assessed at INR 19,300/MT, delivered basis.
Steel grade Pig iron offers as on 5 Apr’16
| Particular | Prices | M-o-M | 3 M-o-M |
| Ex-Cuttack | 18,000 | 800 | 2,300 |
| Ex-Durgapur | 18,600 | 550 | 2,350 |
| Ex-Hyderabad | 18,000 | 0 | 1,600 |
| Ex-Ludhiana | 23,000 | 700 | 2,350 |
| Ex-Raigarh | 19,300 | 1,200 | 2,600 |
| Ex-Raipur | 20,250 | 1,200 | 2,850 |
| Ex-Vizag | 16,800 | 500 | 1,100 |
Basic prices in INR/MT
Source: SteelMint Research
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