Steel Authority of India (SAIL), a state-owned and India’s largest steel producer, recent export tender of 15,000-20,000 MT Pig iron tender did not fetched any bids on account of falling prices in global market.
SAIL had floated this tender on 6 May’16, which closed on 11 May’16 from Haldia Port on India’s East Coast.
Participants mention that recent fall in Chinese billet export prices (down by USD 40/MT W-o-W) have prevailed bearishness in global market. No one is keen to take positions.
“Scrap prices in Turkey have shown resistance after a month long increase. Scrap prices have started correcting in global market and Pig iron will correct soon,” said a global trader based in Singapore.
Pig iron export offers from CIS region are expected to correct in-line with falling scrap prices. Current offers for steel grade are hovering within USD 290-300/MT, FoB Black Sea.
Another tender for 40,000 MT Pig iron by MMTC is expiring on 17 May’16 on FoB Paradip basis (Indian East Coast).
Correction
In our previous article, we mentioned that SAIL’s last tender of 20,000 MT Pig iron on 26 Apr’16 was concluded at USD 277.5/MT FoB Haldia, as per sources.
But, it was not concluded and rescheduled for 11 May’16. Company had received bids at around USD 280-282/MT, FoB but due to some technical reasons tender was cancelled.
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