Indian Pig Iron Export Tender fails to receive Bids

MMTC, which opened an export tender of 30,000 MT (+ 10,000 MT optional) Pig iron on behalf of NINL, has failed to get response from participants owing to weak demand in the global market.

The gloomy sentiments in global steel market have resulted into failure of export tender, which was issued by MMTC on 28 Nov, 2014 and closed on 12 Dec, 2014. Company’s last export tender, which was issued in Oct’14, was finalized at lower rates of USD 330/MT FoB, Indian East Coast to Prime Carbon. The cargo was sold to Thailand at around USD 350/MT CIF Thailand.

Indian Pig Iron Prices may fall further

Poor response for export tender may be a cause of worry for other Indian manufacturers. Participants believed Indian Pig iron prices may fall further as market has already witnessed a sharp price cut by JSPL this week (currently offering at INR 21,800/MT ex- Raigarh) with additional discount of INR 400/MT on bulk purchase. It is expected that other manufacturers may follow suit.

NINL to revise Domestic Pig Iron Prices

NINL is likely to announce revised Pig iron prices in a day or two for domestic market. Company’s last pricing for domestic market was around INR 21,300/MT for N1 grade Pig iron and INR 21,800/MT for N2 grade, allowing discount upto INR 500/MT. It is projected that prices may correct further owing to dull sentiments and stock pressure build after the failure of this export tender.

A source reported, “We would undoubtedly experience price pressure while domestic pricing of Pig iron, but it would be comparatively lower than earlier it use to be. The recent shipment of 33,000 MT and decent response from the domestic market has somehow eased the burden on stockpiles.”

Export Tender in Pipeline

An export tender of 30,000 MT Pig iron is scheduled on 18 Dec, 2014 by RINL (Rashtriya Ispat Nigam Ltd), which was issued on 27 Nov, 2014.

*Discount of INR 400-500/MT on bulk purchase

Note: MMTC on behalf of NINL had issued tender on 28 Nov, 2014 with both technical bid & price bid dated on 12 Dec, 2014.