Vizag Steel, one of the leading Pig iron producer and exporter, has recently held an export tender for 20,000 MT steel grade Pig iron on 19 Jan’17. The company has managed to attract 2 participants according to sources.
Vizag Steel floated this tender on 13 Jan’17 for 20,000 MT steel grade Pig iron with scheduled technical bids to close on 19 Jan’17 for February shipment.
According to market sources, the company has received highest bid at USD 298/MT, FoB Vizag Port followed by second highest at USD 292/MT, FoB Vizag Port. However, company is in negotiation with the bidders as they expected bids around USD 315/MT, FoB Vizag Port.
Notably, the company had cancelled its previous export tender for 20,000 MT steel grade Pig iron which expired on 14 Dec’16 on account of higher bid expectations. The company received 3 bids and the H1 bid received was at USD 281.5/MT, followed by second and third highest at around USD 274, 273/MT, FoB East Coast respectively. But, the company’s expectation was around USD 300/MT, FoB due to higher cost of production.
Current domestic offers for Vizag Steel’s steel grade Pig iron are at INR 22,400/MT (USD 330). The company has increased the prices by USD 500/MT owing to rising steel prices as well as supply constraints.
Alongside, another export tender by MMTC is in pipeline. The company has issued tender for minimum 15,000 MT and maximum 30,000 MT Pig iron exports which is scheduled on 25 Jan’17.
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