Vizag Steel, Indian steelmaker, fails to receive participants in the export tender for a consecutive third time.
Vizag Steel’s 30,000 MT Pig iron export tender, which expired on 20 Aug, failed to receive bids. The company is expected to extend dates to 27 Aug. This is the third time the company has failed to receive any participation. It had initially issued an export tender on 13 July for 30 July’15, which was later postponed to 10 Aug’15 and then to 20 Aug’15.
MMTC, government owned and India’s largest trading house, also failed to receive any response from global participants in last export tender, which expired on 11 Aug’15 and has been further extended to 3 Sept’15
Pig Iron Export Results of RINL
| Issued Date | Bids Date | Qty in MT | Participants | Bids | Results |
| 5-Jun’15 | 25-Jun’15 | 30,000 | Prime Carbon GmbH | 257 | Failed |
| 13-Jul’15 | 30-Jul’15 | 30,000 | No Participant | Nil | Failed |
| Re-issued | 10-Aug’15 | 30,000 | No Participant | Nil | Failed |
| Re-issued | 20-Aug’15 | 30,000 | No Participant | Nil | Failed |
Bids in USD/MT, FoB Vizag Port India basis
Source: SteelMint Research
Global Outlook
Global Pig iron prices, which were stable in last few weeks, may experience pressure in near term. Offers for Pig iron at CIS nations are at USD 230/MT FoB Black Sea, whereas scrap (HMS 80:20) is at USD 240/MT CFR Turkey. Hence, buyers in Turkey and other near by regions are more inclined towards scrap over Pig iron. The buying interest for Pig iron is at USD 220/MT levels, FoB Black Sea, and it seems such levels could be reached in a few days.
Infact fall in Russian and Chinese currency has provided room for price cut in billet offers for export, which is an added threat for Pig iron in near term.
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