BSP, as a central procurement unit of SAIL, has invited bid for a tentative quantity of 41,500 MT silico manganese from indigenous manufacturers for its various plants.
SAIL, one of the major steel producers in India, consumes approximately 125,000 MT silico manganese annually. Therefore, the company intends to procure a tentative quantity of 41,500 MT silico manganese from indigenous manufacturers for a period of four months, starting Oct’15to Jan’16.
The total quantity to be purchased is 41,500 MT, which will meet the requirement of the following plants and shall be covered under two markets for the duration of 4 months.
| Market | SAIL Units | Size (mm) | Tentative Qty (in MT) |
| Market-1 | Bhilai Steel Plant, Bhilai (BSP) | 10-50 mm | 16,000 |
| Market-2 | Bokaro Steel Limited, Bokaro (BSL) | 40-100 mm | 5,600 |
| Durgapur Steel Plant, Durgapur (DSP) | 25-50 mm | 12,000 | |
| IISCO Steel Plant, Burnpur (ISP) | 7,500 | ||
| Alloy Steel Plant, Durgapur (ASP) | 10-30 mm | 400 | |
| Total Tendered quantity of Market-1 & 2 | 41,500 | ||
The material should contain minimum 60% manganese and 15% silicon, and should be dispatched through roadways.Ttransportation shall be arranged by the bidder including freight charges on door delivery basis.
Last date of submission of offers will be on 26 Sep, 2015 at 13.00 hrs and technical bids will be opened on 28 Sep, 2015 after 10.30 hrs.
Domestic Market
Domestic demand for silico manganese continues to be thin; market participants highlighted that purchasing was low. The biggest problem for silico manganese market is weak steel margins, which constrained demand from steel mills who continued to buy hand-to-mouth. Demand for silico manganese is declining on all fronts, both foreign and domestic.
Silico manganese 60-14 is being offered at INR 46,500-47,000/MT (ex-Raipur) and INR 46,000/MT (ex-Durgapur).
Previous SAIL Tender
In the last tender floated by SAIL for purchase of 37,100 MT silico manganese for its various palnts, starting June’15-Sept’15, the techno-commercial bid revealed that 11 plants had participated in the tender, namely, Hira Ferro Alloys Ltd., Vandana Global Ltd., Prakash Industries Ltd., Sarda Energy & Minerals Ltd., Maithan Alloys Ltd., Nilkant Ferro Alloys Ltd., Sarda Metals & Alloys Ltd., Shyam Ferro Alloys Ltd., Castron Technologies Ltd., Shree Bholey Alloys Pvt. Ltd., and Cosmic Ferro Alloys Ltd.
The online reverse auction tender process revealed L-1 price for Durgapur Steel Plant (DSP) was INR 48,506 /MT and Bhillai Steel Plant (BSP) was INR 50,726 /MT on FOR basis.
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