MMTC on behalf of Neelachal Ispat Nigam Ltd (NINL) has issued a tender for sale of Pig iron, rather than issuing price circular for the domestic market.
MMTC has invited tender for sale of Pig iron in the domestic market for around 56,000 MT Pig iron. Company’s last offer for Pig iron at INR 20,700/MT (additional discount of INR 400/MT),expired on 10 Jan, 2015. Therefore, industry participants were eagerly waiting for the price-circular of NINL for rest of Jan’15.
Market participants anticipated that MMTC might announce slight cut in Pig iron prices owing to less stock pressure than earlier, after the success of it’s recent export tender. However, witnessing poor demand/price war in the domestic market, the company decided to float tender instead of price circular.
To provide clarification on MMTC’s motive behind the notice inviting tender (NIT), the company official expressed, “The idea behind tendering is to investigate customers opinion towards market price and reach every type of customer (large as well as small scale).”
Domestic Pig Iron Offers remain Stable
Indian Pig iron manufacturers have kept offers unchanged from a couple of week. Also, they were waiting for NINL to release Pig iron prices in order to get further clarification in market direction. Currently, Pig iron offers in the major Indian markets like Cuttack, Durgapur & Raigarh are in the range of INR 20,700-21,500/MT ex-works, with additional discount on bulk purchase.
Pig Iron Prices as on 17 Jan’15
| Particular | Delivery terms | Offers in INR/MT | W-o-W | M-o-M |
| Domestic | Ex-Cuttack | 20,300-20,700 | 0 | -500 |
| Ex-Durgapur | 20,800-21,000 | 0 | -500 | |
| Ex-Raigarh | 20,900-21,000 | 0 | -500 | |
| Ex-Raipur | 21,400-21,500 | -200 | -750 | |
| Export* | FoB India | 320 | -10 | -10 |
| FoB Black sea | 335 | 0 | -5 |
*Prices in USD/MT
Tender Details
- Total quantity: 56,400 MT
- Bid submission due date: 20 Jan’15 at 14:30 hrs
- Opening date : 20 Jan’15 at 15:00 hrs
- Product specification: Basic grade
- Si: Upto 1.24%
- Mn: Less than 1%
- S: 0.05% max
- P: 0.15% max
- C: 3.6-4.3%
- Weight: 15-20 Kg
Material will be available on ex-plant basis.
| Lot Nos. | Estimated Auction Qty (MT) | Lot size Qty to be quoted (MT) |
EMD in INR/MT | Tender fee + 12.5% VAT in INR (Non refundable) |
| Lot 1 | 100 | 50-100 | 750 | INR 500 + INR 62.5 |
| Lot 2 | 100 | 50-100 | 750 | INR 500 + INR 62.5 |
| Lot 3 | 100 | 50-100 | 750 | INR 500 + INR 62.5 |
| Lot 4 | 100 | 50-100 | 750 | INR 500 + INR 62.5 |
| Lot 5 | 3,500 | 1,000-3,500 | 750 | INR 1,000 + INR 125 |
| Lot 6 | 7,000 | 3,500-7,000 | 750 | INR 1,000 + INR 125 |
| Lot 7 | 10,500 | 10,500 | 750 | INR 1,000 + INR 125 |
| Lot 8 | 14,000 | 14,000 | 750 | INR 1,000 + INR 125 |
| Lot 9 | 21,000 | 21,000 | 750 | INR 1,000 + INR 125 |
NINL is one of the largest and state-owned Pig iron manufacturer in India.
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