India: SAIL Receives Overwhelming Response for its 13,000 MT Pig Iron; May Increase Prices

Steel Authority of India Ltd (SAIL) has received decent response for its 13,000 MT steel grade pig iron offer floated on 25th Oct'19 for sale from Bhilai Steel Plant(BSP), SteelMint learnt from trade participants. Nearly 10,000 MT pig iron was learned to have booked at base price, shared company official.

However as per couple of major stockists in central India (Raipur), they have booked approximately 15,000 MT pig iron from SAIL's BSP at an average price of INR 23,200-23,300/MT ex-plant, which is equivalent to INR 23,600-23,700/MT FoR Raipur.

Meanwhile another furnace owner claimed purchase of about 3,000 MT pig iron from Bhilai Steel Plant (BSP) at INR 23,200/MT ex-plant, equivalent to INR 23,500-23,600/MT landed.

If sources are to be believed, SAIL has received decent response and is likely to float fresh price circular in next few days.

"Since Neelachal Ispat (NINL) is yet to resume pig iron production, there is active demand for SAIL's pig iron." cited traders in Central India.

SAIL is India's largest steel producer in terms of capacity which is about 21 MnT per annum. 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.