Rashtriya Ispat Nigam Limited (RINL), has received a high bid for 30,000 tonnes Pig iron export tender today.
The Vizag based manufacturer had offered the material to overseas buyers, through an export tender on July 20.
Though, the tender failed to receive a response twice in the last one month, it has fetched a high bid today.
As per SteelMint`s expectations and analysis with reference to an article posted earlier today, Prime Carbon GmbH (Switzerland) was the only participant.
In contrast to streets expectations at USD 367/MT FOB, the importer has bid higher at USD 370.70/MT FOB Vizag Port for a single cargo.
Based on a mutual understanding, both RINL and Prime Carbon are willing to go for two cargoes (60,000 tonnes).
The Indian Exporter gets advantage out of Sliding Rupee
Indian Rupee is witnessing a free fall against US dollar and touched an all time record low of 64 in early trade today.
The weakening currency has accounted for big realizations and raised RINL's margins as prices are quite high, by around Rs 1,039/MT.
Considering USD = INR 63.5 and price bid received at USD 370.70/MT FOB, the total value stands at Rs 23,539/MT in comparison to RINL's domestic price quoted at Rs 22,500/MT (ex works).
RINL likely to award the Tender to Prime Carbon GmbH
Looking at the good response and high prices, RINL will definitely award the tender to Prime Carbon GmbH.
Instead of one, RINL might offer two cargoes which will help the exporter to get rid of its current high stock position and account for good returns from falling Rupee.
A final decision is to be taken by RINL on August 21.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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