Indian Pig Iron Export Tender Fails to Receive Bids

Two of the renowned Pig iron exporters in India failed to attract global participants in export tenders held back to back.

Pig iron export tenders scheduled on 26 and 27 Oct’15 by MMTC and Vizag Steel respectively went unnoticed. The companies have offered about 30,000 MT of basic grade Pig iron each.

Indian Pig iron exporters have not closed any export tender since Jul’15 (except of the recent SAIL’s export to Bangladesh).

Continuous fall in global Pig iron demand/prices has made it difficult for Indian manufacturers to compete in the global market.

Sharp fall in global scrap prices and lucrative billet offers from China have played an important part for shift in interest in steel manufacturers (from pig iron to billet and scrap). Current offers for Pig iron in global market is in the range of USD 165-170/MT, FoB Black Sea.

Indian export for Pig iron have fallen by around 50% in H1-2015. Korea and Thailand were among largest importers of Pig iron exported by India,  which are now more inclined towards importing Chinese billets (due to cost-effectiveness).

Vizag Steel extends Pig iron export tender

Vizag Steel has issued date of extension of Pig iron export tender to 13 Nov’15 on the backdrop of poor response received in its recent tender held on 27 Oct’15.

Global and Domestic Offers as on 30 Oct’15

Source: SteelMint Research