Vizag Steel, also known as Rashtriya Ispat Nigam Ltd (RINL) has increased Pig iron prices by INR 1,200/MT (USD 18/MT).
Current offers for steel grade are assessed at INR 19,500/MT (USD 290/MT) ex-works (excluding Excise and Taxes).
As per trade sources, the company has increased offers due to tight supply (low inventory) amid limited seasonal production. Price hike by RINL has came as a surprise for market, when other manufacturers are cutting down prices. Sources mentioned that RINL’s price hike is not relevant to market as the company do not have the stock.
Basic grade Pig iron offered by Vizag Steel Since Jan’16
| Month | Base Rates | Discount* | Discounted Price |
| 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 |
| May’16 | 18,500 | – | – |
| Jun’16 | 19,500 | – | – |
Prices in INR/MT
*on purchase of above 12,000 MT
Source: SteelMint Research
Neelanchal Ispat Nigam Ltd (NINL), a state owned and India’s largest Pig iron manufacturer, has recently reduced Pig iron offers by INR 900/MT (USD 15/MT).
Following the price trend of NINL, Pig iron offers in secondary market also fell by INR 200-900/MT in a week and during a month by INR 7,00-2,000/MT amid poor trade activities in domestic and global market.
Steel grade Pig iron prices as on 2 Jun’16
| Particular/Delivery | Prices | W-o-W | M-o-M | Q-o-Q |
| Ex-Cuttack | 17,900 | 900 | 1,250 | – |
| Ex-Cuttack(NINL) | 17,900 | 900 | 1,400 | 250 |
| Ex-Durgapur | 17,600 | 600 | 1,750 | 500 |
| Ex-Giridih | 18,100 | 150 | 1,400 | – |
| Ex-Hyderabad# | 20,550 | 500 | 800 | 2,550 |
| Ex-Vizag | 19,500 | 0 | 1,000 | |
| Ex-Ludhiana# | 23,500 | 450 | 1,400 | 1,000 |
| Ex-Raigarh | 20,000 | 300 | 1,000 | – |
| Ex-Raipur | 20,500 | 200 | 600 | 1,300 |
| Ex-Rourkela | 18,100 | 900 | 1,900 | 1,550 |
Basic prices in INR/MT
# FoR (Including excise & Freight, CST excluding)
Source: SteelMint Research
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