The largest state owned Indian Pig iron maker and price setter Neelanchal Ispat Nigam Limited (NINL), with 0.85 MnTPA capacity, would be offering a small quantity, either to domestic or overseas buyers, depending on realizations, once its Steel Melting Shop (SMS) starts operating at full stream.
Steel 360 spoke to Mr. Manasranjan Behera, DGM, Sales & Marketing, Mesco Steel, to learn about its impact on secondary Pig iron industry.
Here are the excerpts of the interview:-
Q. Do you see any scarcity of steel grade Pig iron in domestic market as NINL will use 80% of its output in SMS? How would secondary Pig iron producers benefit out of this?
Initially, Indian market will witness scarcity of Pig iron, which may not happen in the long run as Mesco Steel is in the verge of resuming production from its 2nd blast furnace.
However, in the short run, secondary Pig iron makers are expected to benefit as far as prices are concerned which are likely to witness an upswing of around Rs 500/MT. the uptrend in prices will not sustain for a long span and will regain previous levels.
Q. Infrastructure spends and rise in demand from manufacturing sectors seems to be driving growth of Pig iron industry. Also, Iron ore supply is to improve soon and coking coal prices are softening. In your opinion, how will be the prices and demand for Pig iron in the quarters to come?
There will be heavy pressure on the prices of steel grade Pig iron in the near future, most importantly due to its strong availability. Softening of raw material prices would also pull down Pig iron prices as the cost of production would lessen.
I hope, government looks into infrastructure spend seriously, which would allow the movement of finished products and ultimately a rise in demand as prices are not the only factor to determine fluctuations in demand.
(The full text of the interview is available in the May issue of the magazine.)