Neelachal Ispat Nigam Limited (NINL), a state-owned and India’s largest Pig iron manufacturer, has reduced its offers by INR 500/MT.
NINL gifts its customer by offering cheaper Pig iron in year-end. It’s current offer is INR 20,700/MT for N1 grade (Si upto 1.24%) and INR 20,900/MT for N2 grade (Si: 1.25-1.79%) ex-Cuttack, with an additional discount of upto INR 500/MT.
Participants shared, failure of recent Pig iron export tender (issued on 28 Nov, 2014) coupled with prevailing selling pressure and price war in the domestic market has bounded the company to reduce Pig iron prices for domestic end-users.
|Quantity Purchase||N1 Price||N2 Price||Discount|
|Upto 499 MT||20,700||20,900||No discount|
|500 to 999 MT||20,600||20,800||100|
|1,000 to 1,999MT||20,500||20,700||200|
|2,000 MT and above||20,300||20,500||400|
Prices in INR/MT
Company in order to make its offer more acceptable in market, is allowing discount for minimum purchase of 500 MT. It is also offering additional freight rebate of upto INR 300/MT on the above discounted prices for rakes movement (one rake = 3,500 MT approx).
|Distance (in kms)||Freight Rebate (in INR/MT)|
|1,600 and above||300|
- The above offers are against 100 % advance payment
- Prices are valid till 10 Jan, 2015
Domestic Prices as on 31 Dec, 2014
|Particulars||Market||Grades||Price in INR/MT||W-o-W|
|Pig iron||Durgapur||Steel grade||21,000||-100|
|Sponge iron||Raipur||80 FeM||19,500||-150|
Source: SteelMint Research