RINL had offered 30,000 tonnes of Pig iron to international buyers, through an export tender on September 16.
Specification of the material: Steel grade & Si 1.0% max
Technical bids opened today and three traders have participated in the tender.
Other than the two usual participants namely LG International (South Korea) and Prime Carbon GmbH (Switzerland), a new trader submitted a technical bid.
Shabro International Pte Ltd, a Singapore based trader has participated in RINL's Pig iron export tender.
Price bids will open at 15 hrs IST on October 10.
According to traders, it is quiet difficult that RINL will receive high bids as international Pig iron prices and demand remain on the lower side.
Prime Carbon and LG International might bid lower to USD 370/MT FoB. As far as the new participant is concerned, market has to wait and watch how aggressive the trader is to bag an Indian Pig iron cargo.
Overseas Pig iron offers are standing at USD 380/MT FoB Brazil, USD 390-392/MT CFR Korea and USD 383/MT FoB Black Sea.
Considering a price bid at USD 370/MT FoB Vizag Port, traders will have to bear about 18 dollars as the freight charges, 3 dollars as logistic cost and 4 dollars as other charges.
Also, including a profit margin of 3 dollars, the final price stands at USD 398/MT CFR South East Asia.
Furthermore, anything higher to this will not be acceptable by end users based in the Far East or South East Asian countries.
Steel demand is not very encouraging as finished Steel off take is low and Chinese market, which is the driving force for global Steel market, is slow.
RINL is a Ministry of Steel owned and India's second largest exporter of Pig iron, based in Vizag (Andhra Pradesh).
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