MMTC receives decent bids in tender; seals at USD 2/MT higher than previous.
MMTC, which on behalf of NINL closed an export tender of 30,000 MT (and 10,000 MT optional) Pig iron on 16 June’15, had received decent bids in the range of USD 261-264/MT in the event.
After a long time, three companies together namely Prime Carbon GmbH, STX & MTPL showed up in the tender event. Prime Carbon turned out to be the highest bidder (H1) at around USD 264/MT. Whereas STX bids at USD 262/MT and MTPL at USD 261/MT FoB Paradip Port.
MMTC is reported to have concluded the deal for 30,000 MT Pig iron with Prime Carbon (H1) at USD 264/MT FoB Paradip Port. The shipment is expected to take place during first week of July’15.
The company in its last export tender of 80,000 MT Pig iron had finalised the deal with MTPL (40,000 MT) at around USD 262/MT, FoB East Coast of India. But had not concluded the deal with Prime Carbon for another 40,000 MT finding it low.
NINL keeps domestic offers for Pig iron unchanged
The company has kept Pig iron offers unchanged till 23 June. Current offers for N1 grade (Si upto 1.24%) are at INR 17,500/MT ex-Cuttack with discounts upto INR 400/MT on bulk purchase and N2 grade Pig iron (Si 1.25% to 1.74%) at INR 17,700/MT with discounts upto INR 100/MT.
Recently, the company extended the date for submission of expression of interest (EoI) to 22 Jun’15 from 16 Jun’15.
Perhaps, the company is keeping its domestic prices unchanged because it is waiting for the market response towards EOI that is to open 22 June’15. It is assumed that the response towards EOI would clarify the levels at which the buyers would be comfortable in booking the material. This will also help rest of the market in offering Pig iron accordingly.
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