Indian Traders Book Around 30,000 MT Pig Iron in Recent NINL Price Circular - Sources

Neelachal Ispat (NINL) - India's largest Pig iron producer, has received good response in current domestic pig iron price allocation made. The company had sharply raised offers by INR 1,800/MT (USD 25) for Steel grade material.

On 11th Sep'18, NINL had floated domestic price circular for Steel (N1) grade at INR 29,500-29,900/MT (USD 409-406) & Foundry (N2) grade at INR 30,500/MT (USD 423); prices are excluding GST, ex-Cuttack, East India. The price validity is expiring on 20th Sep'18.

As per trade sources, NINL received decent response in steel grade pig iron offers and close to 30,000 MT has been booked and majorly by Central India based stockiest which is near about 90%.

The stockiest in Central region claimed that, they want to book more material, however there was limited availability of pig iron with the NINL due to pending deliveries in domestic market as well as for exports. Hence they got less allotment, despite of strong demand.

The furances in Raipur & Raigarh - Central region largely procure NINL pig iron owing to limited supply by local manufacturers amid competitive prices and quality of NINL pig iron.

The last export tender of 30,000 MT pig iron by the company was concluded during Aug-end at around USD 385/MT, FoB India, for Sep'18-end shipment.

NINL has an annual installed capacity of 1.1 MnT hot metal per year and has increased its capacity utilization after it completed its blast furnace capital repair work in early May this year.