India’s largest and state-owned trading house, MMTC has issued an export tender of 30,000 MT basic grade Pig iron and its tender is scheduled on 23 Nov’16. The material is produced by Neelachal Ispat Nigam Limited (NINL), Duburi, Odisha, India.
It’s been a month, the company had issued an export tender as it was entirely focusing on offering material in the domestic market due to high demand.
Synopsis of the tender
Quantity: Firm lot- 15,000 MT; Optional lot-15,000 MT
Loading port: Paradip Port, India
Shipment period: During 5th Dec – 15 Nov’16
Delivery basis: FOBST Paradip Port
Destination: Any country other than banned countries
The due date for bid submission is 23 Nov’16 at 14:30 hrs. Technical bid opening and price bid opening are scheduled on the same day at 14.45 hrs and 16.30 hrs IST respectively.
Last export tender for 15,000 MT Pig iron got canceled due to high domestic demand
On 22 Aug’16, MMTC had floated it last export tender for 15,000 MT Pig iron which got expired on 08 Sept’16.
The company had managed to attract 2 participants. The tender received the highest bid at around USD 247/MT, FoB East Coast, and the second highest bid was at around USD 242-243/MT, FOB. However, the company had canceled the tender owing to better realizations and high demand from domestic buyers.
Global Pig iron Market Scenario
Global pig iron offers continue to move up sharply due to expensive coking coal and rising scrap prices. Major exporter like Brazil and Russia are keeping their offers high in order to test the market. Current offers are at USD 295-300/MT, FOB Brazil and at USD 280-285/MT FoB Black Sea.
Market participants believed that at the current market scenario when global pig iron prices are at higher levels if India could export steel grade Pig iron, the tender may attract the bids around USD 290-295/MT, FoB India.
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