MMTC to Focus on Domestic Market for Pig Iron Sales

Indian Pig iron exports dropped 40% in FY15, where as production rose by 30%.

MMTC, on behalf of NINL, has released an expression of interest (EOI) for signing MOU with the domestic buyers for sale of Pig iron . The period of sale will be from Jul’15 to Mar’16. The EOI should be submitted till 16 June’15 at 17:00 hrs.

The company will consider the prevailing prices mentioned in the valid price circular at the time of actual delivery on ex-NINL basis. The MOU signing party will be given an additional discount of INR 100/MT in the open sale offers declared by MMTC through price circulars.

Minimum quantity lifted by the buyer will be at least 18,000 MT +/- 10% of Pig iron till March 2016 at the rate of 2,000 MT per month.

Steep Fall in Export in FY15 a Matter of Concern for Domestic Sellers

Export of Pig iron in FY15 has been noted as 0.6 MnT. The figures has dropped by 0.4 MnT; it was around 1 MnT in FY14. On the other hand, saleable production of Pig iron has increased by about 30%. In FY15, production recorded at around 9 MnT against 7 MnT in FY14.

However, MMTC managed to export around 0.3 MnT. Reasons for lesser exports could be jotted down as continuous fall in Pig iron prices, preferred choice of imported scrap over Pig iron for steel smelters, lucrative billet offers from China & Russia shifts buying interest of Pig iron consumers.

Due to above reasons regarding fall in figures of Pig iron exports, the company is more concerned over domestic market and through signing MOUs it will secure buyers in domestic markets.

In India, Pig iron is majorly exported by MMTC, Vizag Steel and Sesa Sterlite. MMTC and Vizag steel offer their material through tender route, while Sesa Sterlite sells it directly.