Neelachal Ispat Nigam Limited (NINL), Nations largest Pig iron exporter since 2004-05, had offered 30,000 tons of the material through an export tender on July 23.
Specification: Basic grade (N1), Si Up to 1.24%; Shipment: for Mid-August
Technical bids is to open at 1500 hrs IST today.
SteelMint thinks atleast a couple of overseas parties should be interested to participate in the tender, though buying interest might be limited to one cargo only.
It looks difficult that price bids, which is to open on 06 August (tomorrow) might reach above USD 370-373/MT FoB, considering the sliding Rupee at 60 levels per US dollar mark as of today.
And, NINL's ex plant Pig iron (N1) prices for domestic buyers is currently standing at Rs 22,000/MT i.e. after quoting discounts on bulk purchases.
Today, USD = INR 60.8; therefore USD 363 = INR 22,070 and about 3-4 dollars more is to be borne by NINL as logistics cost.
Presently, Pig iron is being offered in the range of USD 380-395/MT FoB Black Sea and at USD 385/MT CFR Korea in the international market, unchanged in the last fortnight.
Indian Pig iron producers are trying hard to sell out their material on quite weak demand and prices have witnessed a free fall in the week gone by.
If the deal is good, NINL would be benefited as depreciating Rupee is quite favorable to wind up an export deal as trades in domestic market has not been encouraging.
NINL Opens Technical Bids at 1500 hrs IST
As per SteelMint analysis and expectations, a couple of parties namely Prime Carbon GmbH (Switzerland) and LG International (South Korea) have shown their interest.
Both the participants were able to make through the technical round.
It has been heard that NINL is anticipating to receive price bids above USD 373/MT FoB for its 30,000 tons (with 30,000 tons as an optional lot, at seller's option) tender.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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