Rashtriya Ispat Nigam Limited (RINL) had signed a Memorandum of Understanding (MoU) with LG International, a South Korean international trading company on April 05, 2013.
According to the MoU, a total quantity of 120,000 tonnes of Pig iron can be sold out in FY 14 to the Korean trader i.e. one shipment of 30,000 tonnes every quarter.
For the first time after signing of the MoU, a deal has been finalized between both the parties for 40,000 tonnes of the material at USD 370.70/MT FoB Vizag Port.
Shipment of the material will take place in the month of October.
The MoU states that the price will be quoted at what RINL sold its last Pig iron cargo in export market i.e. H1 bidder's price.
RINL had concluded its last Pig iron export deal at USD 370.70/MT FoB Vizag Port
in the last week of August.
Previous to this, no deal had been concluded on the MoU basis as prices were on the higher side in comparison to the traders expectations, fluctuating Rupee against US dollar and low demand in international market due to sufficient stock available.
RINL is delighted to conclude the deal as it will be able to liquidate a big quantity of the material, the inventory level was quite high and also as the company decided to concentrate on export market.
Rupee is at 63 level against US dollar and the deal will result in high margins for RINL, in comparison to its domestic offers standing at Rs 23,000/MT (ex works Vizag).
RINL is a state owned Pig iron producer and India's second largest exporter of Pig iron with about 4 MnTPA installed capacity and 50% of its Pig iron sales targets is for export purposes
Leave a Reply