Market participants still hesitant; single bid received in the tender.
Vizag Steel, a leading state owned Pig iron producer and exporter in the country, received single bid in its latest export tender of 30,000 MT held on 25 May’15. According to sources, Prime Carbon GmbH was the only trading company which participated in the event. The bids received in the tender were around USD 255-260/MT, FoB Vizag Port, and is yet to be awarded, sources added.
Vizag Steel closed last export tender at around USD 260/MT FoB in April, after a gap of 4 months. While, MMTC, another Pig iron exporter recently sold 40,000 MT to MTPL at USD 262/MT FoB Paradip Port.
Despite improving global steel market, participants are hesitant to bid high. One of the market participants shared that although offers at Black sea have improved, buyers are still reluctant to pay more.
“Owing to volatility in scrap and iron ore prices in global market, buyers are not very aggressive at the moment. For India, south eastern countries are the major market for Pig iron. But steel mills and traders here are more inclined towards cheaper semi finished & finished offers from China.” said a Pig iron trader.
Indian Pig iron exports noticed a significant drop of 40% in FY15, whereas production went up sharply by around 36% in FY15. In FY14, India produced 7.1 MnT saleable Pig iron and exported 1 MnT, while in FY15, production was recorded at 9.7 MnT and export at 0.6 MnT.
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