India: SAIL Keeps Pig Iron Offer Unaltered for Sept'19

Steel Authority of India Ltd (SAIL) has rolled-over basic grade (steel grade) pig iron offers from its Bhilai Steel Plant (BSP) based in Central India, SteelMint learned from market sources. Prior to this the producer had cut offer for Aug'19 deliveries by around INR 700/MT (USD 10).

The latest offers for Steel grade pig iron is reported at around INR 23,800/MT (USD 330), which was being offered at same level during Aug 2019, ex-plant & excluding GST. These offers are also attract discount of INR 100-300/MT on bulk bookings, as sources reported to SteelMint.

It seems that following slight change in offers by private producers has influenced the steel maker to keep pig iron prices unaltered for prevailing month.

As per assessment the steel grade pig iron prices by private mills are fluctuating by about INR 300-500/MT since couple of weeks and currently offered in eastern India at INR 23,600-24,000/MT ex-Durgapur, INR 23,500-23,800/MT ex-Jharkhand & INR 22,800-23,000/MT ex-Jajpur, Odisha.

Meanwhile in central region offers hovering at around INR 23,600-23,800/MT FoR Raigarh & INR 23,800-24,000/MT FoR Raipur. In northern India, the offers are evaluated at INR 26,300-26,500/MT FoR Ludhiana.

SAIL is India's largest steel producer in terms of capacity with an annual installed capacity of over 21 MnT. Meanwhile in context to Pig iron NINL is the largest merchant producer of pig iron with an annual hot metal production capacity of about 1.1 MnT.