MMTC, India’s largest and state owned trading house, had floated an export tender of 30,000 MT Pig Iron on behalf of NINL (Neelachal Ispat Nigam Limited) which got expired on 27 Jun’17.
As per market sources report to SteelMint, the company received good response and it managed to receive bids from three parties. According to market participants, the company received H1 bid around USD 299-300/MT followed by 2nd highest bid at around USD 295/MT followed by next bid at USD 292/MT.
In the latest update received, trade sources highlighted that the company has concluded the tender at around USD 300-302/MT, FOBST Paradip port.
The shipment period for the material is scheduled between 10 Jul-20 Jul’17.
Few trade sources are of the view that the company may come up with the next export tender.
MMTC’s previous pig iron export tender which expired on 15 Jun’17 received poor response following which the company canceled it. As per market sources, the bids received were in the range of USD 290-295/MT, FoB basis.
NINL reduced domestic pig iron prices thrice in Jun’17 – Owing to declining demand amid GST, NINL reduced pig iron prices thrice in Jun’17. In its latest price cut announced on 24 Jun’17 the manufacturer reduced prices by INR 500/MT. The latest offers are reported for Steel (N1) grade at INR 20,000-20,250/MT (USD 307-310) & Foundry (N2) grade at INR 20,250-20,500/MT (USD 310-315); prices are basic, ex-Cuttack, East India. Bulk purchase discount remain unaltered at INR 100-400/MT.
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