Improving global Pig iron prices influence Indian exports; tender bids up by USD 5-10/MT
MMTC, India’s largest and state owned trading house, on behalf of NINL has finalized Pig iron export tender at higher bids on account of rising Pig iron prices in global market.
MMTC had issued export tender for 80,000 MT Pig iron (2 lots of 30,000 MT+10,000 MT optional each) on 20 May. Deal for one lot of 30,000 MT has been finalized at USD 262/MT, FoB India. Another lot is still in negotiation.
Two companies participated in the tender, namely MTPL & Prime Carbon GmbH. MTPL became the highest bidder, bidding 30,000 MT (first lot) at USD 262/MT, FoB East Coast of India. Whereas, Prime Carbon showed interest over second lot of 30,000 MT, for which deal is yet to be concluded.
Deal with MTPL has been finalized and material would be shipped as per the dates mentioned in the offer-papers, only if the company does not opts for the optional 10,000 MT. The shipment dates may extend if it finalizes the optional quantity too.
MMTC in its previous tender held on 11 May did not receive satisfactory bids, owing to which it reissued the tender for 20 May’15. The bids received were in the range of USD 250-255/MT, FoB India.
Black Sea Pig Iron offers up by USD 10/MT
Strong scrap prices in global market has made Pig iron manufacturers across the world raise their offers. Russia and Ukraine, which are the largest exporters of Pig iron have noticed a price hike of USD 10 in last one week. Steel grade Pig iron is heard to have sold at USD 270/MT, FoB Black sea. Similarly Brazilian manufacturers have also raised their offers to USD 260-265/MT, FoB.
Prices as on 22 May’15
| Particular/Delivery | Prices in USD/MT | W-o-W | M-o-M |
| Pig iron, FoB Brazil | 260-265 | + 4 | – 7 |
| Pig iron, FoB India | 262 | + 2 | – 7 |
| Pig iron, FoB Black Sea | 270 | + 12 | + 20 |
| Scrap, CFR Turkey | 285-290 | + 10 | + 20 |
| Pig iron, Ex-Cuttack, India | 17,100-17,500* | – 200 | – 700 |
*Prices in INR/MT
Source: SteelMint Research
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