Rashtriya Ispat Nigam Limited (RINL), the state owned Basic grade Pig iron producer, offered 30,000 tons of the material, initially on 06 June.
It had postponed the tender opening date on 24th of this month, for the third time.
The tender has failed to receive any response again (the third time); the technical bids opened at 3:30 p.m. today.
“We were not interested to close any deals with Indian exporters for July shipment, as the stock position is already high, but were looking for something during August.
Due to free fall of international Pig iron prices, we could not find many buyers this month and were unable to get rid of the inventory.
RINL was willing to sell the cargo at $380/MT FoB Vizag Port and not below that, which was quiet difficult when Rupee slightly appreciated to 59 levels”, importers told SteelMint.
Other factors such as the weakening Indian currency and downtrend in overseas Pig iron offers presently i.e. $370-375/MT CFR Korea and $370/MT FoB Black Sea, did not support any buying desire.
RINL is Expected to Come Out with a New Export Tender
In the first week of July, the company is expected to float a new 30,000 tons Pig iron export tender.
The shipment period might be decided for mid-July, as it is looking to clear stocks at the earliest feasibility and take advantage of the exchange rate of INR.
RINL Might Roll Over July Pig Iron Prices
Currently, the manufacturer is offering Pig iron at Rs 22,500/MT (ex works) to domestic takers.
Discount of Rs 400/MT is quoted on bookings being received for 8,000 tons and above quantity.
It is anticipated that RINL might continue offering its material at similar prices the next month also, as offers are already standing at low levels.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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