MMTC, India’s largest and state owned trading house, had floated export tender of 30,000 MT non-alloy Pig Iron produced by Neelachal Ispat Nigam Limited (NINL), Duburi, Odisha which expired on 14 Jul’17. The material is likely to be shipped during 21 Jul’17-31 Jul’17.
According to the market sources report to SteelMint, the tender fetched bids higher by around USD 10/MT compared to the previous tender.
Market participants highlighted that the recent tender attracted participation from five companies and the H1 bid was at around USD 312.5/MT, FoB basis followed by 2nd highest bid at USD 310.5/MT, FoB basis. The company is yet to conclude the tender.
MMTC’s previous tender for export of 30,000 MT non-alloy pig iron expired on 27 Jun’17 and as per sources the tender was concluded just above USD 300/MT, FoB basis.
Which all factors have resulted in hike in Indian Pig iron export offers ?
1. Hike in domestic prices owing to less pig iron availability – Pig iron availability in India’s major markets has witnessed reduction owing to reasons like GST implementation and improved demand in exports.
2. Uptrend in scrap offers – Imported scrap offers have increased in global market and are likely to increase further. Offers for Shredded scrap to India are presently heard at USD 310-315/MT, CFR India, up USD 15-20/MT M-o-M.
3. Rise in billet export offers – Billet export offers from India have escalated to USD 415-420/MT, FoB basis; up by USD 10/MT on monthly premises. Billet export offers have increased owing to high demand and supply crunch of billet in global market.
Indian Pig iron exports at 201,500 MT in Q1 FY18 – During Apr-Jun’17, India exported 201,500 MT pig iron against 193,550 MT in Q4 FY17. 31% of the Indian pig iron exported in Q1 FY18 was shipped to Thailand followed by Italy, USA , Korea and others.
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