India: NINL's 2nd Pig Iron Price Cut in Jan, Reduces Offer by INR 500/MT (USD 7)

Neelachal Ispat Nigam Ltd (NINL)- India's largest and state-owned steel grade pig iron manufacturer and exporter has again reduced its pig iron prices by INR 500/MT (USD 7/MT), after a reduction in same proportion made in the beginning of Jan'19.

The latest offers by the company floated for Steel grade is at INR 26,900/MT (USD 377/MT), N2 grade is at INR 27,500/MT (USD 385/MT) and Foundry (High silicon) grade is at INR 28,000/MT (USD 392/MT); prices are basic, ex-Cuttack, East India.

Meanwhile, the company has rolled over the bulk purchase discount on steel grade pig iron of INR 100-400/MT.

Participants believe that, the company has cut prices due to significant fall in prices through the private producers as well lukewarm response in the last price circular.

The current offers by private producers in eastern India - Durgapur & Jharkhand is hovering at INR 27,000-27,200/MT ex-plant & excluding GST.

As per sources, the recent price correction by NINL will not made any negative impact in the merchant market as landed cost of NINL will be high in neighbouring furnaces.

The landed cost of NINL pig iron in Central India, Raipur would be around INR 27,800-28,000/MT, while the currently trades are happening at the same prices.

Meanwhile in eastern India (Durgapur & Jharkhand) the landed cost of NINL material would be approximately at INR 27,500-28,000/MT FoR, although through the private producers it traded at around INR 27,200-27,400/MT FoR & excluding GST.