MMTC, India’s largest and state owned trading house, which closed an export tender of 40,000 MT Pig Iron on behalf of NINL on 6 Apr’15, finalizes deal USD 10/MT higher than the bids it received.
MMTC in the export tender received bids of around USD 250-255/MT, FoB India. Looking at the low bids, the company asked the participants namely, MTPL & STX Corporation, to review their bids.
MTPL being the highest bidder, increased its bid by USD 10/MT upon revision, to USD 265/MT FoB India and finalized the deal at the same level. MTPL had bid for around 30,000 MT out of 40,000 MT in the tender. Shipment is expected to take place by the first week of May’15.
RINL also receives Bids at USD 250/MT Levels
RINL (Vizag Steel), which offered 30,000 MT Pig iron for export till 20 Apr’15, received a single bid of around USD 250/MT, FoB India.
A source shared that only Prime Carbon GmbH participated in the event. Prime Carbon GmbH was the only bidder in RINL’s previous tender too at USD 255/MT, FoB India, which the company denied to offer.
One of the market participants (global buyer) shared a view on same note, “Currently it is completely a buyers’ market in Pig iron exports. If the buyers don’t find feasibility, they have got other better options across the globe to purchase Pig iron.”
Exports in FY15
India exported around 0.6 MnT Pig iron in FY15, whereas 0.16 MnT in 2015 (Jan-Mar’15). Around 65% of total Pig iron exports this FY were shipped to Thailand & Korea. However, these countries also source Pig iron from Indonesia, Japan & China where offers differ by around USD 5-10/MT from those in India.
| Month | Ports | Qty | Price | Destination | Exporter |
| Jan-15 | Paradip | 27,000 | 320 | Thailand | MMTC |
| Jan-15 | Paradip | 42,000 | 320 | South Korea | MMTC |
| Feb-15 | Paradip | 30,000 | 310 | South Korea | MMTC |
| Mar-15 | Mormugao | 27,500 | 260 | Malaysia | SESA |
| Mar-15 | Mormugao | 30,000 | 280 | Saudi Arabia | SESA |
Source: SteelMint Research
Global affairs
Pig iron offers at Black sea have stabilized at USD 250-260/MT FoB Black Sea on the back of improving Iron ore prices in China and bullish Scrap prices. However, experts say this rise in offers may not sustain for long.
Whereas, offers in Brazil further witnessed a fall of USD 6-8/MT and are at USD 265-268/MT, FoB Brazil.
Global Pig iron Prices as on 25 Apr’15
| Delivery Terms | Size/Grade | Prices in USD/MT |
W-o-W Change |
1 Week Before |
2 Weeks Before |
| FOB Brazil | Steel Grade | 267 | – 8 | 275 | 275 |
| FOB India | Steel Grade | 255 | 0 | 255 | 255 |
| FOB Black Sea | Steel Grade | 250 | + 5 | 245 | 245 |
Source: SteelMint Research
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