India: SAIL Global Tender for Purchase of 19,540 MT Pet Coke

Steel Authority of India (SAIL) has published a global tender for purchase of 19,540 MT calcined petroleum coke from overseas/domestic suppliers during the period Sep’18 to Apr’19 for its 8 different plants (4 markets) across the India.

The techno-commercial bids will be frozen up to April 2019 and the price discovery shall be done in cycles of 4 months each.

The projected requirement of all 4 markets is 19,540 MT. Company has released this RFQ for first cycle (Sep’18 to Dec’18) of quantity 8,700 MT which is due on 14 Sep’18.

Market wise requirement of the company:

Chemical Composition:
Fixed carbon: 99% min
Sulphur: 1.2% max
Volatile matter: 0.4% max
Ash: 0.5% max
Moisture: 0.1% max

Eligibility Criterea:
Tenderer eligible for participation should either be a producer of CPC, Indian Central PSU trading house or overseas supplier having due authorisation from the CPC producer. An Indian agent can also submit offer on behalf of only one foreign principal, if being authorised by foreign principal.

Manufacturer Bidders should have an installed capacity to produce 15,000 tonne of CPC per annum.

Manufacturer Bidder must have produced and despatched 10,000 tonne min. of CPC in 12 consecutive months during January‟2014 to Dec‟2016. The bidder shall submit a statement showing customer name, Excise Invoice no & Date/Bill of Lading and quantity supplied for establishing the credentials.

The bidder must quote for minimum 60 % quantity of Market 1, 70% for Market – 2 and 100% quantity of Markets 3 & 4.

The offered quantity of each bidder for Market 2 must include at least 70% of each plant‟s requirement. If the bidder is a past supplier of SAIL, on the due date of opening, the bidder should not have a defaulted quantity of more than 20% of Calcined Petroleum Coke against any purchase order where the scheduled contract period / delivery period for the total ordered quantity against that purchase order has expired.

Due date (IST):
Due date of bid submission is 14 Sep’18 till 14:00 hrs and opening is scheduled on same day at 15:30 hrs.

For contact details view TENDER SECTION

Petcoke Market Insights:
• In India, restocking activities for pet coke have dropped in recent weeks due to the onset of monsoon season.

• Moreover, buyers are currently not in a hurry to procure any fresh cargoes as they expect pet coke prices to soften going forward.

• Furthermore, demand for pet coke is slowing due to higher landed prices as a result of high dry bulk freight rates.

• Meanwhile, on the pricing front, pet coke import offers to India are at all-time highs — latest offers for pet coke (6.5% sulfur) from USA are assessed at around USD 125/MT CNF India, while offers for pet coke (9% sulfur) from Saudi Arabia are assessed at around USD 119/MT CNF India.

• Currently, Indian domestic prices of pet coke are INR 9,200/MT (Reliance Industries Ltd.) and INR 8,750/MT (Mangalore Refinery and Petrochemicals Ltd.).