Central India: SAIL BSP Reduces Pig Iron Price by INR 500/MT

SAIL, one of India's major steel producer has cut its steel grade pig iron price by INR 500 (USD 7)/MT due to poor participation on floated offers during Feb'20.

The current offer for pig iron is assessed at INR 27,500/MT EXW-Bhilai, central India against last offer of INR 28,000/MT in Feb'20. In addition, SAIL BSP is also offering bulk purchase discount of INR 100-300/MT on present offers, sources reported.

As per the company's credible sources, SAIL allotted about 20,000 MT pig iron during last month but didn't receive good response from buyers. Thus, the company has now floated fresh offers with reduced price range.

At present, the available quantity of pig iron with BSP is reported at about 15,000 MT, in which about 5-10% material has already been booked by traders and the remaining is expected to be sold to traders and mills in Raipur.

Offer through the another premium grade pig iron manufacturer in Raipur dropped in Mar'20 and was assessed at INR 27,600-27,800/MT as against 27,800-28,000/MT during Feb'20, ex-plant.

Prices in remaining locations have also moved down by INR 500-1,000/MT in last 7-10 days and stand at INR 26,200-26,500/MT ex-Durgapur, INR 27,600-27,800/MT ex-Raigarh, INR 27,000/MT ex-Rourkela, INR 29,300-29,500/MT FoR Ludhiana & INR 28,000-28,200/MT FoR Hyderabad.

Sources believe that Indian pig iron prices may remain under pressure due to falling billet prices and low capacity utilization of furnaces owing to poor offtake of finished products.