Neelachal Ispat Nigam Limited (NINL) opened technical bids for its 60,000 tonnes Pig iron export tender today. The tender was floated on September 16.
Three traders have participated in the tender and got through the technical round. Other than LG International (South Korea) and Prime Carbon GmbH (Switzerland), MMTC Transnational Pte Ltd (MTPL) has participated in the tender.
MMTC Transnational Pte Ltd (MTPL) is a Singapore based trading company promoted by MMTC Limited in 1994.
Now that there are three participants, SteelMint thinks that MTPL might quote the highest at USD 374/MT FoB, followed by LG International (South Korea) and Prime Carbon (Switzerland).
LG International might be the 2nd highest bidder
The South Korean trader is to receive 40,000 tonnes of Pig iron from RINL in the month of October.
It might be interested for 30,000 tonnes Pig iron and bid at USD 370/MT FoB and not quote high as NINL is able to sell a limited quantity of the material at INR 23,500/MT (ex works) to domestic buyers.
The Switzerland based trader might surprise market and bid low
Prime Carbon might bid low at around USD 368.5/MT FoB this time and might not be very keen to bag NINL's Pig iron cargo.
The trader is yet to receive 60,000 tonnes of Pig iron from RINL and therefore, might fail to find an end user for NINL's material.
Demand for Pig iron is quite low in international market and prices might fall due to limited requirements of the material, resulting in a loss for Prime Carbon.
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