Indian state owned trading house MMTC, on behalf of Neelachal Ispat Nigam Ltd (NINL) had floated an export tender of 30,000 MT Pig iron for June end delivery. This tender expired on 2 Jun’17.
According to sources, company managed to get bids from four companies, highest (H1) being above USD 305/MT FoB India east coast. MMTC has finally negotiated this tender at around USD 310/MT FoB India and it may be shipped to South East Asia, according to market participants.
Last two tenders by MMTC were cancelled due to higher price expectation. Company had floated this tender on 20 Apr’17 having carbon content 3.6-4.3% , silicon up to 1.24% and phos 0.20% max.
MMTC has floated a fresh tender of 30,000 MT for June end or early July shipment from Indian east coast. Last dates for placing bids are set on 15th June 2017.
NINL cuts domestic offers
NINL has cut domestic prices by INR 500/MT (USD 7) for June deliveries. Prices have been cut on account of falling billet prices and low participation for global buyers. Current offers for steel grade pig iron is INR 20,800/MT (ex-mill, Odisha). Company is offering a quantity discount of INR 400/MT on purchase of above 6,000 MT.
Notably, NINL has reported increase in hot metal production in the month of May 2017 by around 2,500 MT. Company produced 62,670 MT hot metal in May against 60,160 MT in the month of April 2017. NINL is the largest merchant steel grade pig iron producer with an annual production of around 700,000-750,000 MT.
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