Vizag Steel extends the export tender to 9 Sept’15, on the backdrop of poor response in global tender held on 1 Sept’15.
Vizag Steel (RINL), one of the largest steelmakers, has recently extended its 30,000 MT Pig iron export tender till 9 Sept’15. This is the fourth time the company is extending the tender date owing to dull/ no response received the event.
The company was unable to attract any bidder in its last export tenders held on 1 Sept’15. This export tender was originally issued on 13 July’15, till 30 July’15 and has been extended three times till 1 Sept’15.
Just as RINL, another major Pig iron exporter MMTC also failed to receive bids in its export tender (for 40,000 MT) conduct on 3 Sept’15 and has reissued the same tender till 21 Sept’15.
Result of Last Few Export Tenders of Pig Iron by RINL (India)
| Issued Date | Due Date | Qty in MT | Participants name | Bids | Result |
| 5 June’15 | 25 June’15 | 30,000 | Prime Carbon | USD 257/MT FoB Vizag port |
Cancelled |
| 13 July’15 | 30 July’15 | 30,000 | No participant | No bids | re-issued |
| 30 July’15 | 10 Aug’15 | 30,000 | No participant | No bids | re-issued |
| 10 Aug’15 | 20 Aug’15 | 30,000 | No participant | No bids | re-issued |
| 20 Aug’15 | 1 Sep’15 | 30,000 | No participant | No bids | re-issued |
| 5 Sep’15 | 9 Sep’15 | 30,000 | results awaited | results awaited | results awaited |
Source: SteelMint Research
Outlook
Global participants are cautious and expects price to be under pressure in the near term. This is mainly because of the increase in supply anticipated, after the Chinese shut-down mills re-start its production by 5 Sept’15.
Secondly, the reduced offers for Chinese billet in the global market has started to build pressure in the scrap & Pig iron offers, globally.
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