Indian Pig Iron & Billet Export Tender fail to receive Bids

Indian Pig iron & Billet export tender again failed to receive any bids from buyers, on the backdrop of inactive global market.

Rashtriya Ispat Nigam Ltd (RINL), which had floated an export tender of 30,000 MT Pig iron in line with 80,000 MT Bloom and 20,000 MT MS Billet (specifically for African, ASEAN, Middle East countries), has failed to get response on the backdrop of dull global demand, owing to Christmas holidays around the world.

Earlier this week, Neelachal Ispat Nigam Ltd (NINL) also failed to receive bids for its 30,000 MT Pig iron export tender, which was later re-scheduled for Jan’15.

Market participants believed that on going holidays coupled with dull sentiments in the global market is responsible for this failure. Looking at scenario, RINL is now planning to come up with a fresh tender, to be scheduled around first week of Jan’15.

Last Pig iron export tender by NINL was settled at around USD 330/MT FoB East Coast of India in the month of November, with a sharp fall of USD 60/MT from the previous deal.

International Updates

Like India, market in CIS nations is also not encouraging; falling Russian and Ukrainian currency against US Dollar has made export offers very competitive. Currently, Pig iron is traded at around USD 335/MT FoB Black Sea. Similarly, Brazil is also trading at USD 365/MT FoB with a fall of USD 15/MT M-o-M.

Note:

• RINL had issued the export tender on 27 Nov, 2014 for sale of 30,000 MT basic grade Pig iron; scheduling technical bid & price bid on 18 Dec, 2014.
• Company also issued the export tender for sale of 80,000 MT Blooms & 20,000 MT Billets on same date i.e. 27 Nov, 2014 specifically for African, ASEAN & Middle East countries with technical bids scheduled on 18 Dec, 2014.