Indian Pig Iron Export Tender receives lower Bids

MMTC, India’s largest and state owned trading house which closed an export tender of 40,000 MT Pig Iron on 6 Apr’15, received bids around USD 250-255/MT FoB  East coast of India.

Sources mentioned two trading companies namely, MTPL & STX participated in the event, where MTPL came up to be the highest bidder at USD 255/MT FoB East coast of India.

Looking into the company’s delay in closing the tender, it is likely that company will re-issue the tender with a new date.

Another expected possibility could be, the company (MMTC) is waiting for the market response on RINL export tender (30,000 MT) closing on 20 Apr’15 (today), for easier decision-making. RINL in its last tender received bids around USD 255/MT FoB Vizag, which it denied to award.

Last export shipments of Pig iron from India were recorded at USD 260/MT FoB West coast of India, in early April.

Domestic Manufacturers keep offers firm

Talking about domestic affairs, NINL has recently revised domestic price for Pig iron at INR 18,400/MT ex-Cuttack. Offers have been kept unchanged, however it has allowed discounts up to INR 400/MT on quantity purchase. The company on 7 Apr’15 had raised the Pig iron offers by INR 300/MT for April deliveries.

With this move of the company, Pig iron market has witnessed positive sentiment across India. Major markets like Durgapur, Raigarh & Raipur reflected rise in offers up to INR 200-300/MT. Currently Pig iron price in major markets are in the range of INR 18,000-20,500/MT, ex-works.

Indian Pig iron exports down by 40% in FY15

Pig iron exports from India witness a drop of 40% Y-o-Y, on account of falling global prices & currency fluctuation. Pig iron exports from India touched around 0.6 MnT in FY15.

Source: SteelMint Research