India: KIOCL invites Tender for Sale of 0.2 MnT Iron Pellets

KIOCL has invited domestic bidder for sale of BF grade Iron pellets in Karnataka (India).

KIOCL Limited, a central government public sector undertaking enterprise and 100% export oriented unit with a production capacity of about 3.5 MnT of Iron ore pellets per year, is intending  to sell 200,000 MT (0.2 MnT) BF grade Iron ore pellets on Dry Metric Tonnes (DMT) basis in domestic market.

In a recent notification uploaded on company’s website, Iron pellets are available on following conditions:

• Participants firm/company should be in operation for at least two completed financial years
• Annual turnover of company during past two years shall be at least INR 2.85 billion pa with positive net worth
• The company may use online forward auction procedure for bidding
  

Specification

• Fe: 63%
• FeO: 0.5%
• SiO₂+Al₂O₃: 8%
• Size (9-16 mm): 85%

Loading Port: New Mangalore Port (Karnataka)

Quoted (basic price) shall be based on FOBST, New Mangalore port basis excluding taxes & duties.

Current prices are at around INR 7,750/MT (USD 127) on ex-works basis in Mangalore for Fe 63% Pellets.

Indian steel makers have shown their interest towards imported Iron ore, specially after prices have fallen down to 5 years low. South African lumps (6-40 mm) of Fe 64% are assessed at USD 98-100/MT CFR Kandla port for a supramax/panamax vessel delivery in October.

Market participants have also mentioned that offers for Brazilian Pellets to India have increased.

Important Time & Dates

• Bid submission due date: 14:00 hrs IST on 09 Oct, 2014
• Bid opening date: 15:00 hrs IST on 09 Oct, 2014