Indian Pig Iron Export Tender receives Bid lower by USD 10/MT

Pig iron export tender, which was scheduled on 5 Jan, 2015 by MMTC, has received poor bids from participants. 

MMTC on behalf of NINL had offered 40,000 MT Pig iron for exports on 16 Dec, 2014 with bids scheduled on 05 Jan, 2015. In this episode, two global trading companies namely STX Corporation and MTPL came up with active participation.

Market sources informed the company has received H1 bid lower by USD 10/MT against its previous export deal (deal value) and it is yet to finalize the deal. Though, bids are low at around USD 320/MT FoB India, the company may award the tender at this level while analyzing the current market scenario.

Major Reasons that may influence awarding of Tender

• Depreciating Indian Rupee – creating room for exports
• Poor domestic demand – building stock pressure
• On-going price war in the domestic market
• Speculation of price to decline further owing to increased supply of Iron ore on Odisha 50:50 supply reform
• Fear of Sponge iron prices to correct further
• Poor steel demand across the globe
• Pig iron export by CIS nations at low levels of USD 335/MT, FoB Black Sea

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MMTC on 16 Dec, 2014 had offered 40,000 MT basic grade Pig iron (firm lot -30,000 MT+optional lot-10,000 MT), scheduling technical & price bid on 5 Jan, 2015.
Company’s last export tender of 30,000 MT Pig iron floated in the month of Oct’14 was closed at USD 330/MT, FoB Paradip with Prime Carbon – a Switzerland based trader. The cargo was shipped to Thailand at USD 350/MT, CIF Thailand.[/su_box]