SAIL floats Tender for import of 150,000 MT MS Scrap

SAIL, India’s largest and state owned steelmaker, has floated a global tender to procure a total quantity of 150,000 MT Melting Scrap at Salem Steel plant (SSP) for a period of 12 months on CFR Chennai Port basis.

Salem Steel Plant (SSP), a unit of SAIL located in Tamil Nadu intends to procure a cumulative quantity of 150,000 MT MS Scrap in two lots (HMS1 & Shredded Scrap). The required quantity will be needed for a period of 12 months. The quantity breakup is HMS1 at the rate of 8750 MT per month (total 105,000 MT) and Shredded Scrap at the rate of 3,750 MT per month (total 45,000 MT).

The tender applicant must have successfully supplied a minimum quantity of 25,000 MT of MS Scrap (HMS1/HMS2) in preceding five financial years. In case of Shredded scrap, they should posses a minimum supply experience of 10,000 MT of non-alloy steel melting scrap (Shredded) as per US ISRI code 211 in preceding five years.

Bidders should quote a minimum 50% of the required quantity.

Quotation of Prices
Overseas bidders should give their quotation in USD/MT on Chennai Port basis and domestic bidders should give their quotation in INR/MT on FoR-SSP basis.

Material Packing: Material should be packed in 20 feet end-opening containers

Mode of Dispatch:
Imports will be through sea upto Chennai Sea Port and then by road from Chennai to Salem Steel Plant. Domestic supplies will be dispatched by road.

Last date of submission of bids will be 1 Jun’15 at 15:00 hrs and opening of bids will be conducted on 2 Jun’15 at 10:00 hrs.

FY15 Indian Scrap Imports at 5.2 MnT

Indian Ferrous scrap import rose by 27% in FY15. It was recorded as 5.2 MnT in FY15 as compared to 4.1 MnT in FY14. South Africa turned out to be the largest importer to India contributing about 17% of India’s total Ferrous scrap import.

However,in the month of Apr’15, import figures turned out to be 516,000 MT, a rise of 27% as compared to Mar’15 which was 406,000 MT. It has been assessed that the rise in Scrap import owes to bulk shipments from USA.

Current Scrap offers to India 

Source: SteelMint Research