NINL’s export tender did not receive any response owing to steeply felling global Pig iron prices.
NINL issued a global tender on 3 Feb’15 for 40,000 MT Pig iron that expired on 26 Feb’15. Sources mention, “Company did not receive any participant to bid for the export tender. There were no bids earned.”
Participants believe that steeply declining Pig iron prices in the global market is resisting the Indian export purchase. The sudden decline in the prices is owing to competitive Billet & Scrap offers from Russia.
Current offers of Pig iron in CIS nations are at around USD 280-285/MT, FoB Black sea. Whereas, the previous export tender from India was settled at USD 310/MT, FoB East coast of India. This is about USD 20/MT costlier compared to CIS offers, which are a bench mark in present trading scenario.
On 10 Mar’15. NINL has one more export tender for 40,000 MT Pig iron. Keeping in view the global updates & the upcoming tender, the company’s further action is not yet clear on the failed tender.
In this case, company may pull in the material for domestic sales rather than re-issuing.
NINL’s Domestic Affairs
Company has recently issued new offers for N2 grade Pig iron at INR 18,800/MT (ex-Cuttack) with a price cut of around INR 600/MT from its previous offerings. It is also providing an additional discount of upto INR 700/MT on bulk purchase.
Participants showed a fair response to the new offer. Few quick deals have been heard at around INR 18,600-18.800/MT in 2 days.
Sources mentioned that currently, the company’s N1 grade Pig iron is out of stock and therefore it’s focusing on N2 grade sales. Last offers for N1 grade was at INR 19,400/MT with discounts of upto INR 200/MT.
Indian Pig Iron Outlook
Pig iron prices in major markets have remain stable. Raipur & Raigarh manufacturers look assertive and they’re offering the product at same level i.e. about INR 21,400-21,500/MT & INR 20,800-20,900/MT respectively, ex-works. Similarly, Durgapur manufacturers also kept their prices unchanged at INR 19,200-19,500/MT, delivered to Durgapur.
Pig iron is in a tough of war as increased Ingot/Billet prices are supporting the prices but bearish global sentiments are bringing it down.
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