Jindal Shadeed Iron & Steel had floated a tender for supply of 30,000 WMT pellets produced by Jindal Steel & Power. The tender floated was for grade Fe 64% of size 5-18 mm and last shipment date 20 Dec’17 with laycan of 1-10 Dec’17. The tumbler index for the pellets was min 90%, CCS 210kg/pellet min and abrasion index of 5% max.
The tender floated mentioned load port as Sohar port, Oman and discharge port as Main port, China.
According to sources, Jindal Shadeed Iron & Steel had purchased some quantity of BF pellets from JSPL few months back. But now since they received DRI grade pellets, they are selling back the BF grade pellet stock they had with them via tender.
According to market sources report to SteelMint, the supplier had kept base price of USD 119/MT, CFR China. But the tender failed to receive participation from the bidders.
As per reports of market participants, the reason behind dull response to the tender was the steel production cuts in China that are scheduled to take place on 15 Nov’17. Tangshan and Handan provinces are likely to be heavily affected by the production cuts owing to winter heating season. Also few sources mentioned that owing to higher expectations, the company could not receive bids.
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