Indian Pig Iron Export Tender fails to attract Bids

MMTC, India’s largest trading company, which has invited overseas buyers on behalf of NINL to purchase Pig iron through its export tender, has received single bid and decided not to award it.

Prime Carbon Gmbh (Switzerland based trader), one of the active bidders in Indian Pig iron export tender, was the only participant in the global tender event. Market source shared the bid received was very low, so the company find the bids not workable.

Amid poor global steel market, the company is receiving poor response in the global tenders; it is being consecutive 3 months when the company has not finalized any export deal. Last export deal of another giant Pig iron manufacturer was settled at USD 395/MT FOB Vizag in the month of September, 2014.

Falling Scrap Prices

Falling Scrap prices in the global market is a major concern for Pig iron exporters. Scrap prices have corrected almost by USD 70/MT in last 6 months, which has directly impacted export prices of Pig iron. Current offers for Shredded Scrap from Europe is assessed at USD 330-335/MT CIF India (down by USD 80 since May, 2014).

“No body will pay high for Pig iron at the moment, when they have option of buying cheaper Scrap from Europe/US or Billet from China,” commented a Pig iron trader, who regularly participates in export tender.

[su_box title=”Indian Domestic Pig Iron under Pressure” style=”soft” box_color=”#04183e” title_color=”#ffffff”]

1. West Bengal based manufacturers further reduce offers by INR 300/MT. Currently, they are offering Steel grade Scrap at INR 21,500/MT (ex-works)
2. NINL may correct Pig iron prices in the domestic market due to weak response in global market. Current prices are in the range of INR 21,500-22,000/MT (ex-works), valid till 17 Nov, 2014[/su_box]