MMTC- India’s largest and state owned trading house, has floated a fresh export tender of 40,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL). Apart from 30,000 MT firm quantity, the pig iron exporter has also offered an optional quantity of 10,000 MT depending upon the availability of pig iron. The due date for submission of bids was 14:30 hrs on 06 Jun’18.
The material offered has specification – C: 3.6-4.3%; Si: up to 1.24%; Mn < 1%, S: 0.05% max; P: 0.2% Max. The shipment is scheduled between 20 Jun-30 Jun’18 from Paradip port.
Prior to this the company had floated an export tender for same quantity for which due date was 25 May’18.
According to market participants report to SteelMint, the highest bid (H1) was around USD 390-395/MT, FoB India. Industry participants mentioned that bids fetched in this tender were quiet higher than their expectations and such price levels are only possible if cargo is shipped to Bangladesh. However as per sources company was eyeing for levels of USD 400/MT, FoB.
In the latest update received, the company is likely to cancel previous floated tender amid high price expectations, and the company has flaoted a new tender for the same quantity.
According to market sources report, domestic pig iron prices in India are expected to move down in coming days over improved supply. Prices for Steel grade in Durgapur is assessed at INR 30,500-31,000/MT (USD 452-458), down by INR 100-200/MT W-o-W and around INR 29,600-30,000/MT (USD 438-444) in Cuttack (GST extra).
Global pig iron export offers
Global pig iron export market seems to have remain quiet over less trades being witnessed in last few weeks. Price assessment for CIS origin high manganese pig iron is around USD 370-385/MT, FoB Black Sea.
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