Domestic Pig iron market has witnessed slight correction in prices. Participants anticipate further chance of correction in prices.
Eastern & Central Pig iron market of India have witnessed a price correction of around INR 100-200/MT this week. Pig iron prices, which have sustained for a week, began to fall on the backdrop of Odisha government’s allocation of Iron ore to state-based industries under 50:50 rule.
The ordinance passed by Odisha government is damaging Sponge iron prices, which may build pressure on Pig iron prices as well. Adding on to the existing pressure, Steel Authority of India (SAIL) and JSW are also offering fair quantity of Pig iron to the market, when most of induction furnaces are running under capacity and this is creating price war among Pig iron manufacturers.
Meanwhile, growing pressure in Pellet prices, which is continuously falling by INR 200-300/MT per week, is also becoming a reason for market to panic.
Neelachal Ispat to revise Pig Iron Prices Shortly
Neelachal Ispat Nigam Limited (NINL) is likely to revise Pig iron prices soon (probably in a day or two). Earlier, the company had kept its offers firm introducing lucrative discounts on purchase of 100 MT and above.
Failure of recent Pig iron export tender (issued on 28 Nov, 2014) with existing price pressure in domestic market may influence the company to reduce Pig iron prices for domestic end-users.
Domestic Prices as on 30 Dec, 2014
| Particulars | Market | Grades | Price in INR/MT | W-o-W |
| Pig iron | Durgapur | Steel grade | 21,000-21,200 | -100 |
| Raigarh | Steel grade | 21,000-21,200 | -200 | |
| Raipur | Steel grade | 21,700-22,000 | -200 | |
| Cuttack | Steel grade | 20,700-21,000 | -200 | |
| Rourkela | Steel grade | 21,000-21,300 | 0 | |
| Jharsugda | Steel grade | 20,700 | 0 | |
| Giridih | Steel grade | 21,400-21,500 | -100 | |
| Sponge iron | Raipur | 80 FeM | 19,500 | -150 |
| Durgapur | 78-80 FeM | 19,400* | -1,100 |
*Delivered price
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