MMTC had offered 30,000 MT Steel/N1 grade Pig iron (with Si up to 1.24%) to overseas buyers, through an exports tender on 25 October, 2013. Another 30,000 MT remained as an optional lot on seller’s decision.
Price bids opened on November 07 and Prime Carbon GmbH (Switzerland) was the highest bidder at USD 390.02/MT FoB for 60,000 MT. In the beginning of this week, the trader was awarded the 1st lot at its bid price.
Prime Carbon was interested for the additional lot and MMTC today finalized a deal for the optional lot at USD 396.02/MT FoB i.e. higher by USD 6/MT.
Validity of offers for acceptance was 15:30 hrs IST. Delivery schedule for 1st lot is 25 November-10 December & for 2nd lot is 20 December-31 December.
Since the beginning of the current week, INR is at 63 levels against US Dollar (at 2 months low) and realizations of the state owned Indian Pig iron exporter has moved up in comparison to domestic prices at INR 23,000/MT (ex works).
The rise in Indian Pig iron export prices has surprised streets. Scrap prices are firming up in international market and have supported CIS Pig iron offers in the range of USD 380-385/MT FoB Black Sea.
Specification N1/Steel grade, Si% Up to 1.24 Delivery I FoB Paradip Port basis
MMTC is India’s largest international trading company and offers Pig iron for exports on behalf of NINL, the largest Pig iron producer and exporter in India with 0.85 MnT pa installed capacity. The former sets domestic Pig iron prices for NINL too.
MMTC might raise Domestic Pig iron Prices
After concluding a couple of Pig iron export deal at such high prices i.e. INR 24,571-24,949/MT (INR at 63 level against USD and exports prices at USD 390.02-396.02/MT FoB), it domestic prices are expected to move up in the week to come.
NINL’s Pig iron production is on the lower side, owing to lack of domestic demand which is the driving force for increase in production levels. Finish steel demand remains dull because of limited construction activities.
On account of technical issues, the company’s Steel Melting Shop is (SMS) is not operational in full swing. Pig iron output will be increased by NINL, once its SMS runs into full swing, where it will be utilizing Pig iron in big quantities.
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