Vizag Steel Fails to Receive Response For Pig iron Export Tender

Vizag steel fails to fetch bids in export tender; may extend the tender to 10 Aug’15.

A 30,000 MT basic grade Pig iron export tender, which Vizag Steel had issued on 13 July’15 failed to get response from the global participants. The tender closed on 30 July’15.

According to sources, RINL could not receive any participation for the export tender.

Fall in global Pig iron prices to USD 230-235/MT FoB Black sea in CIS nations, along with increasing billet consumption across the globe has hit Indian export market to a noticeable extent.

This is the second Indian export tender in the month that has failed to receive bids. Before this, MMTC too, which closed the export tender on 16 July’15 had not received any participantion in the event. The export tender was issued for 40,000 MT basic grade Pig iron.  Therefore MMTC has invited a global tender for the same till 11 Aug’15.

Alike MMTC, sources informed, on the failure of current export tender, RINL has also extended date for export of Pig iron to 10 Aug’15.

Chinese Billet a threat to Pig iron export market

Major Pig iron consuming/importing countries like Turkey, CIS nation, Korea, Taiwan are currently receiving attractive offers for billet from China at around USD 330/MT CFR Turkey and 315-320/MT CFR Taiwan and Korea. Whereas, Pig iron offers on the global platform are around USD 245-255/MT CFR to the countries. Hence, the reduction in price gap (which was around USD 100-120 earlier) is resulting in a shift of interest, i.e from Pig iron to billet, world wide.