MMTC has settled a tender of 30,000 MT Steel grade Pig iron at USD 320.5/MT, FoB East Coast India with STX Corporation.
MMTC has offered 40,000 MT Basic grade Pig iron (firm lot: 30,000 MT + optional lot: 10,000 MT) on 16 Dec’14, scheduling technical & price bid on 5 Jan’15.
Two trading companies namely MTPL (wholly owned subsidiary of MMTC based in Singapore) and STX Corporation (South Korean company) had participated in the tender, bidding at around USD 310/MT & USD 320/MT, FoB ECI respectively.
The company awarded the tender to H1 bidder STX Corporation, settling at USD 320.5/MT, FoB ECI. Sources informed the material will be shipped to Thailand, with deliveries taking place around last week of January.
Global steel market is still in greys, and major Pig iron suppliers like CIS nations & Brazil continue to offer at lower levels of USD 335/MT & USD 365/MT, FoB respectively.
Similarly, domestic market for Pig iron is also witnessing the same pressure, naming it as ‘buyer’s market’. Manufacturers are experiencing the stock pressure resulting to price war. Currently, Pig iron in the domestic market is offered at around INR 20,000-21,500/MT (ex-plant) based on quantity and delivery.
From the standpoint of the company, looking at domestic selling pressure and dull global demand, NINL might have compromised with bids USD 10/MT less against previous deal at USD 330/MT, FoB ECI and awarded the tender at USD 320.5/MT, FoB.
Pig Iron Prices as on 9 Jan, 2015
| Particulars | Delivery terms | Prices in INR/MT | M-o-M |
| Domestic* | NINL, ex-Cuttack | 20,300-20,700 | -600 |
| RINL, ex-Vizag | 21,300 | -1,000 | |
| SAIL, ex-Rourkela | 20,000-20,700 | -500 | |
| Exports** | FoB ECI, India | 320 | -20 |
| FoB Black Sea, CIS | 335 | -5 | |
| FoB Ponta da Madeira, Brazil | 365 | – |
*Prices based on quantity purchase
**Prices in USD/MT; USD 1= INR 63.20
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