Rashtriya Ispat Nigam Limited (RINL), had floated export tender of 15,000 MT (+/-10%) basic grade steel making Pig Iron for delivery by 10 Jul’17. Material offered had specifications: C: 3.5-4.8%, Mn: 0.5%(max), Si: 1.5%(max), P: 0.18% max, S: 0.06% max. The due date for submission of bids was 11:00 AM on 14 Jun’18 which was later extended till 20 Jun’18.
As per market sources the tender did not elicit encouraging response. Also the bids put were not as per company’s expectations owing to which the tender may get cancelled.
Also higher realizations in domestic market has prevented the company from concluding export deal at lower price.
This week, private pig iron manufacturers in central and eastern India have reduced domestic prices by INR 200-400/MT. Latest offers by private producers in East India for steel grade pig iron (Si upto 1.5%) are assessed at INR 29,000-29,500/MT (USD 426-434) & in Central region at INR 29,500-29,800/MT (USD 434-438) ex-works & excluding of GST at 18%.
In last few weeks , demand for Indian pig iron export has improved on fresh buying from neighboring country, Bangladesh, SteelMint learned from market sources.
According to customs data maintained with SteelMint, India exported 575,450 MT pig iron in CY17. RINL remained the 3rd largest exporter at 72,500 MT after NINL and Vedanta.
Global pig iron market overview –
Price assessment for CIS origin pig iron has remained stable this week at USD 385-390/MT, FoB Black Sea. However pig iron export offers from Brazil have come down recently on fresh deals concluded. Price assessed at ISD 380-385/MT, FoB Brazil.
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