MMTC on behalf of NINL, had floated 30,000 MT Pig iron export tender on 15 May, 2014. The tender has received bids higher by USD 17/MT in contrast to last tender.
Specification of the material: Steel grade & Si upto 1.24%.
Four trading companies namely Prime Carbon GmbH (Switzerland), MTPL (Singapore), STX Corporation (South Korea) and Ronly Holdings (UK) participated in the tender. The first three parties got through the technical round.
MMTC Transnational, a wholly owned subsidiary of MMTC, bid highest at USD 395.21/MT FoB. Prime Carbon GmbH (Switzerland) was the second highest bidder at USD 387.58/MT FoB followed by STX Corporation price bid at USD 379.92/MT FoB.
In May, 2014, MMTC had finalized the last 30,000 MT Pig iron export tender at USD 377.88/MT FoB Paradip port basis with Prime Carbon GmbH.
MMTC preferred to extend the tender opening date to 11 June, 2014, which was earlier scheduled for 28 May, 2014 because of appreciated Rupee against Dollar and upward trend in domestic Pig iron prices by about INR 1,500/MT after Supreme Court ordered suspension of Iron ore mining operations in Odisha.
On 10 June, 2014, MMTC lowered domestic Steel/N1 grade (Si upto 1.24%) Pig iron prices by INR 500/MT to INR 24,750/MT (ex works Cuttack) and N2 grade (Si 1.25% to 1.79%) is at INR 25,000/MT. The company is also offering discount of INR 100-500/MT to INR 24,250-24,650/MT for 1 rake to 3 rakes or more (1 rake is 3,500 MT).
MMTC is yet to decide about awarding the tender as export prices are lower in comparison to domestic market. Traders are not very keen on the cargo. Raw material prices are weak across the globe and market seems to be unpredictable along with low requirement in international market.
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