SAIL, India’s largest and state owned steelmaker, has floated a global tender to procure a total quantity of 81,000 MT Melting Scrap at Salem Steel plant (SSP) on CFR Chennai Port basis.
Salem Steel Plant (SSP), a unit of SAIL located in Tamil Nadu intends to procure a cumulative quantity of 81,000 MT MS Scrap in two lots (HMS1 & Shredded Scrap). The quantity breakup is HMS1 at the rate of 2,500 MT per month (total 18,000 MT) and Shredded Scrap at the rate of 7,500 MT per month (total 63,000 MT).
The tenderer must have successfully supplied a minimum quantity of 5,400 MT of MS Scrap (HMS1/HMS2) in preceding five financial years. In case of Shredded scrap, they should posses a minimum supply experience of 18,900 MT of non-alloy steel melting scrap (Shredded) as per US ISRI code 211 in preceding five years.
Bidders should quote a minimum 70% 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 12 Sep’16 at 15:00 hrs and opening of bids will be on 13 Sep’16 at 10:00 hrs.
Limited Imported Scrap Trades in India
Trade activities remain low in India owing to subdued demand. This is reflected by total imports in July 2016, which fell by over 35% M-o-M.
Scrap offers remain more or less at similar levels from last week. Containerized shredded scrap (25 tonnes load) offers from US are assessed at around USD 225-230/MT CFR Nava Sheva, where as shredded scrap (27 tonnes load) from Europe is assessed at USD 230-235/MT CFR Nava Sheva.
HMS offers from Middle east remain unchanged at USD 210-215/MT CFR Nava sheva, where as offers from South Africa are assessed at USD 215-220/MT CFR Nava Sheva.
Offers for Shredded scrap to Bangladesh unchanged at USD 230-235/MT CFR Chittagong, where as offers to Pakistan assessed at USD 230/MT CFR Port Qasim.
Current Scrap offers to India
| Particular/Delivery | Size/Grade | Prices in USD/MT | Change (W-o-W) |
| CNF, India | HMS(80:20), Europe | 205 | 0 |
| HMS-1, Middle East | 215 | +2 | |
| HMS-1&2, Middle East | 210 | +3 | |
| HMS-1&2, S.Africa | 215 | +3 | |
| Shredded, Europe | 223 | +3 | |
| Shredded, US | 223 | +3 | |
| CNF Bangladesh | HMS(80:20), Europe | 220 | +1 |
| Shredded, Europe | 235 | +5 | |
| CNF Turkey | HMS(80:20), US | 229 | +5.5 |
| FOB Europe | HMS(80:20) | 200 | 0 |
| FOB US | Shredded | 210 | 5 |
Source: SteelMint Research
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