Indian export bids are hit down due to cheaper billet and scrap available to export tender participants.
Vizag Steel, a leading state owned Pig iron producer and exporter in the country, issued an export tender for 30,000 MT basic grade Pig iron.
The delivery of material will be till 15 Sep’15, FoB Vishakhapatnam Port or Gangavaram Port on direct export basis. Quotations for bids will be accepted till 30 July’15 at 15.00 hrs and technical bids will open on the same day at 15.30 hrs. The company will not accept bids for less than 30,000 MT as it is to export the whole quantity. Also, the quoted bids shall be in USD or INR.
Material Specification
- C: 3.5-4.5%
- Mn: 0.50% max
- Si: 1.0% max
- P: 0.12% max
- S: 0.05% max
Last Export Tender Scenario
Last export tender held on 25 June’15 for 30,000 MT basic grade Pig iron received bids below USD 260/MT FoB. According to sources, two companies participated in the event, out of which Prime Carbon GmbH stood as the highest bidder at USD 257/MT FoB Vizag Port.
Similarly, another major Indian exporter MMTC, closed its last deal at a decent rate of USD 264/MT, FoB Paradip Port.
Global Pig Iron Market Scenario
Sudden fall in billet and scrap prices in a last two weeks has hit Indian export bids. Participants are looking at cheaper Chinese billet as major threat to scrap and Pig iron (export) market.
Currently, Chinese billet is heard being offered at USD 320-325/MT FoB China and USD 350-360/MT CFR East Asian countries like Thailand, Bangladesh etc.
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