Neelachal Ispat plans to raise pig iron price

The firm, in which MMTC holds 49.9% stake, is the largest producer and exporter of saleable pig iron in the country

Neelachal Ispat Nigam (NINL) says it is preparing to raise prices of pig iron in the wake of a record spike in global ore prices by 17 per cent. It is the largest producer and exporter of the item in the country.

Ved Prakash, chairman and managing director of MMTC, which has 49.9 per cent of NINL's equity, and chairman of the latter, said: “The price hike could be Rs 300-500 a tonne over the current price of Rs 17,300 a tonne. But, we have to watch market trends to know if this uptrend in iron ore prices continues.”

He said a sustained rise in ore prices could revive the export market for pig iron, presently seeing tepid demand. The NINL factory at Kalinganagar in Jajpur district of this state has annual capacity of 855,000 tonnes.

The rebound in iron ore prices is believed to have been fuelled by a rise in China's appetite. The upswing has been accompanied by a revival in the price of oil and base metals.

However, the spike in global ore prices is yet to trigger a rise in domestic  prices, especially in Odisha, the biggest producer. "In Odisha, production of ore exceeds the consumption. So, I do not see any immediate hike in prices by the mining companies,” said Rajdeep Mohanty, senior vice-president at Essel Mining & Industries, part of the Aditya Birla Group.

The price of ore lumps (with 64 per cent iron) in Odisha is around Rs 1,700 a tonne. Fines are available at Rs 1,100-1,300 a tonne.