Rashtriya Ispat Nigam Limited (RINL), had offered 30,000 tonnes of Pig Iron to international buyers, through an export tender on July 20.
Technical bids are to open for the third time at 1530 hrs IST today, after it failed to receive a response twice earlier.
Price bids will open at 1530 hrs IST on August 22. (It might open today also).
SteelMint thinks that only Prime Carbon GmbH (Switzerland) might be interested to participate in the tender.
Though, a single cargo has been offered, Prime Carbon might bid for 2 cargoes as RINL's current Pig iron stock position is above 1 lac tonnes.
This might happen at RINL's request in order to clear stocks.
Chances are quite less that LG International (South Korea) will be participating, as it is yet to receive a couple of Indian Pig iron cargoes (60,000 tonnes) this month.
It has been heard that another South Korean Company is interested to participate in RINL's Pig iron export tender for October shipment only.
The Tender might receive Low Bid as Rupee has touched an all time Record Low
In the first week of August, an Indian Pig Iron export deal was closed at US$375.38/MT FoB Paradeep Port, Rupee was trading at 60 levels against US dollar then.
Last evening, it touched a fresh new low of 63 against dollar, slipped to 64.11 at 09:30 a.m. today and is down by 5% in last six days.
Considering Rupee at 63.60 level as of now, the tender should receive low bid at US$357/MT FoB (adding 3 dollars as logistics cost).
The deal can ideally close at this price, owing to RINL's domestic Pig iron prices standing at Rs 22,500/MT (ex-works).
In contrast to streets expectations, Prime Carbon bids high by about 7 dollars for Indian Pig iron tenders.
So, the price bid might reach anywhere between US$364-367/MT FoB.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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