MMTC on behalf of NINL has finalized the export deal of 30,000 MT Pig iron with Prime Carbon GMbH, Switzerland based trading company.
Neelachal Ispat Nigam Limited (NINL) had floated tender for export of 30,000 MT Pig iron in October, 2014. Amid low bid received by single participant namely Prime Carbon GmbH, MMTC did not awarded the tender. But now, after analyzing the current scenario in domestic as well international market, the company has reworked on it and has finalized the export tender at same bid of USD 330.11/MT FoB East Coast of India which is it received on 13 Nov, 2014.
Sources mentioned that Prime Carbon GmbH has further sealed deal with a Thailand based company at around USD 350/MT CIF.
The present deal settled is almost USD 60/MT lower than its last deal, which took place in the month of August with MTPL at around USD 393/MT FoB ECI. MMTC could not settle export tender for continuous two month i.e September & October due to poor response in export market. This would have definitely built stock pressure on it. Therefore, company has decided to ship its 30,000 MT consignment even at these levels. Shipment dates are yet to be decided, but sources say it would probably take place in the 1st week of December.
To ease its stock pressure, the company had also corrected Pig iron offers by around INR 1,200/MT for the domestic market. Current offers are in the range of INR 21,300-21,800/MT (ex-Cuttack), providing addition discount of upto INR 700/MT on purchase of 21,000 MT.
Currently, Brazil based manufacturers are offering at USD 370/MT FoB Brazil. Whereas, CIS nations are trading Pig iron at USD 350/MT FoB Black Sea. Continuing geo-political tension between the nations here (CIS) is hampering steel export to a large extent and it is resulting to depressed steel demand. In addition, falling Iron ore & Scrap prices with cheaper Billet offers from China is further adding up the difficulties.
Note: MMTC on behalf of NINL issued tender on 09 Oct, 2014 with technical bid & price bid dated on 29 & 30 Oct, 2014 respectively, which was later extended to 12 & 13 Nov, 2014 respectively.
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