India: Neelachal Ispat Rolls over Pig Iron Prices

Despite decent bookings in last offers, the company has kept offers unchanged in latest price circular floated today. The participants believe that, prices have been rolled over on account of declining steel (Billet) prices in domestic market owing to weak demand from domestic buyers.

Neelachal Ispat Nigam Ltd (NINL)- India's largest and state-owned steel grade pig iron manufacturer & exporter has floated latest offers for steel grade pig iron at INR 27,150/MT (USD 388), the prices are similar against revision on 13th Feb, which was valid till 27th Feb'19. This prices attract bulk purchase discount of INR 100-400/MT.

It is to be noted that, the local steel prices observed significant downtrend and have plunged close to INR 6,00-1,200/MT (USD 8-17) in a week's time.

Participants earlier were assuming that NINL could slightly raise pig iron offers, however when the steel prices started to fall, expectations about price hike lessened.

Amid falling steel prices, India's largest steel producer - SAIL (Steel Authority of India Ltd) has also received moderate response in the pig iron auction of 13,800 MT, held on 5th Mar'19. The company was floated base prices at INR 27,400/MT ex-plant (Rourkela), in which about 3,000 MT have been sold out and remaining was unsold.