Indian trading house, MMTC had issued an export tender for 15,000 MT Pig iron with scheduled technical bids to close on 08 June’16. The company had cancel the tender and re-issues a new tender.
Few market participants shared that, the company has managed to receive a single bid in its export tender. Due to weak demand in the global market, the company was not able to get a better response in its export tender.
This is the third time the company has re-issued the same export tender for 15,000 MT Pig iron in hopes to get a better response. The tender will open on 05 Jul’16.
Last export tender receives poor response; the company re-issued the tender
The respective tender was firstly issued in the month of May’16, with scheduled technical bids to close on 17 May’16. The tender received only single bid from Ronly Limited, a global trading company.
Due to less participation, the company canceled the tender and re-issued a new one with scheduled technical bids to close on 08 June’16.
If we talk about previous few tenders, the company has been struggling to find buyers in the global market due to weak demand in the global market.
NINL lowers its domestic Pig iron offers by INR 900/MT
Recently, NINL has also reduced its steel grade Pig iron offers by around INR 900/MT in a month time. Current offers are hovering in the range of INR 17,900/MT (USD 270/MT) with bulk quantity discount of about INR 400/MT.
Indian Pig iron prices are also under pressure due to increased supply from primary players and poor trade activities.
Indian Pig iron exports remain unviable
Consecutively, its been 4 months Indian Pig iron exports are unviable. Declining Pig iron and global scrap offers couple with falling Chinese billet export offers (currently at USD 290/MT, FoB China), have led to shift in interest of global Pig iron buyers who preferred Indian Pig iron.
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