India: SAIL Offering Pig Iron from Bhilai Steel Plant
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Steel Authority of India Ltd (SAIL) has offered basic grade (steel grade) pig iron from its Bhilai Steel Plant (BSP) based in Central India, SteelMint learned from market sources.
The latest offers for steel grade pig iron is heard at around INR 27,800/MT (USD 397), however the last offers was reported at around INR 26,900/MT (USD 384), ex-plant & excluding GST. The current prices also attract discount of INR 100-200/MT on booking of over 600-800 MT, as sources reported to SteelMint.
It seems the prices have been raised in line higher offers by private mills & surged in domestic steel prices including substitute products i.e. scrap & sponge iron. It should be noted that the private pig iron producers have raised prices by around INR 1,000/MT (USD 14) during Apr'19, owing to short supply .
The landed cost of BSP's pig iron to Raipur based furnaces would be around INR 28,200-28,400/MT, meanwhile the local mills being offered material at around INR 28,400/MT ex-plant, this is equivalent to INR 28,600/MT FoR in Raipur based furnaces; excluding GST.
It seems, SAIL may fetch good response as current prices are attractive in comparison with private mills.
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.
NINL's fresh offers are awaited in the market which are due since 12th Apr'19. The company's last offers were at INR 26,250-26,650/MT (USD 375-381) ex-plant, Cuttack, eastern India.
Offers by Private Mills
-- Neo Metaliks in Durgapur has reduced prices of steel grade pig iron & reported at INR 28,800-29,000/MT ex-plant.
-- Jindal Steel (JSPL) has resumed sales for Panther shots (granulated pig iron) and latest trades reported at INR 27,000-27,100/MT ex-plant, Angul (Odisha).
-- Mesco Steel is offering steel grade pig iron at INR 27,300-27,400/MT ex-plant, Jajpur, Odisha.
