MMTC, Indian state owned trading house may call off its latest export tender of 30,000 MT Pig iron, after bids fell below expected price levels, according to sources.
MMTC received couple of bids for its 30,000 MT pig iron export tender which expired on 13 Apr’17 for May’17 delivery. According to sources, bids were around USD 295-300/MT FOB India east coast.
MMTC had floated this tender on behalf of NINL (Neelachal Ispat Nigam Ltd), which is a state owned and India’s largest merchant pig iron producer.
Higher Domestic Prices
One of the reason that MMTC may cancel this tender is, higher prices in domestic market and low inventory levels. Currently steel grade pig iron is being offered at INR 22,100-22,500/MT (USD 345-351/MT) on ex-plant basis.
According to domestic traders, MMTC may not be willing to conclude this tender at these levels, when they have buying interest from domestic market at higher price. Company’s monthly price circular is expiring on 20th April 2017 and may revise its prices.
Weak Demand in Global Market
Pig iron demand remains weak in global market owing to falling steel prices in China and volatility in scrap prices. Buyers are cautious and unwilling to take positions. Market participants report that availability from CIS region is expected to be better in coming weeks.
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