India’s largest private sector Pig iron exporter based in Goa, is expected to ship Pig iron to Saudi Arabian (Middle East) buyer on 27 Feb, 2014.
A vessel named Reecon Emre is to carry 10,954 MT Pig iron from Mormugao port to a ductile cast Iron making company based in Saudi Arabia. The end user is a long term buyer of the Goa based Pig iron exporting company.
Though, the deal was closed previously, particular specifications required by the user i.e. low sulphur, resulted in shipment during February end. The price was high at USD 465/MT CFR because of specific requirements. Freight charges stood at around USD 28/MT.
This is the third export deal closed by the Goa based Pig iron manufacturer with Middle East countries. They have preferred to take Indian Pig iron because of the transit period of only 4-5 days in comparison to about a month from Russia.
Bulk Pig Iron Exports started in Feb’13 after Increase in capacity
After increase in installed capacity to 0.63 MnT pa for Pig iron making in August 2012, the company started exports in February, 2013. Since the year 2000, it had been exporting small quantities of containerized foundry grade material.
The exporter has concluded 3 deals with a South Korean trading company namely Daewoo International and a couple of them with Singapore based trader.
|
Export Deals concluded by the Goa based Pig Iron Producer |
||||
|
Month |
Qty (in MT) |
Prices in USD/MT (CNF) |
End User/Trader |
Shipment |
|
Jan’14 |
10,950 |
465** |
Saudi Arabia (Middle East) |
Feb’14 |
|
Jan’14 |
33,000 |
414 |
Daewoo (South Korea) |
Feb’14 |
|
Nov’13 |
31,000 |
420 |
Singapore based |
Jan’14 |
|
Oct’13 |
20,000 |
407.8 |
UAE (Middle East) |
Nov’13 |
|
Sep’13 |
30,000 |
403.75 |
Daewoo (South Korea) |
Oct’13 |
|
Aug’13 |
30,000 |
397 |
Daewoo (South Korea) |
Sep’13 |
|
Aug’13 |
30,000 |
365* |
Singapore based |
Aug’13 |
|
Feb’13 |
48,000 |
475** |
Middle East |
May’13 |
* on FoB basis
** on CIF basis
Source: SteelMint
About 52,000 MT Pig iron is being produced per month. To domestic takers, the company offers about 20,000 MT of the material every month. Current offers are quoted at INR 27,500/MT(Ex works Goa) and demand is more or less stagnant.
High freight charges had eaten up the export market in December 2013. Whereas, fall in Pig iron prices in the international market has made exports non viable in the current month. By March end, the company might close an export deal.
Exports will continue as the entire production cannot be absorbed in domestic market. The company’s target market will depend on better margins from either export or domestic sale. Export quantity might be lowered, provided demand & prices don’t pick up.
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