SAIL has invited a tender from indigenous manufacturers for tentative purchase of 41,850 MT silico manganese for its different plants.
Steel Authority of India Limited (SAIL) is the India’s largest steelmaker and produces a variety of steel and iron products, had invited a tender for purchase of total 60,940 MT (tentative quantity) silico manganese in two cycles of 3 months each. The first cycle procurement is completed by the company and now they released the tender for second cycle procurement of quantity 41,850 MT for its different plants/units.
Tentative quantity of silico manganese
|
Market |
SAIL’s Plant | Size (mm) |
Packing | Quantity for 6 months period (MT) |
Quantity for 3 |
| Market 1 | Bhilai Steel Plant (BSP) |
10-50 | 1 MT HDPE Jumbo Bag |
25,440 | 13,000 |
| Bokaro Steel Plant (BSL) |
40-100 | Loose | 4,400 | 4,000 | |
| Durgapur Steel Plant (DSP) |
25-50 | Loose | 14,000 | 12,200 | |
| IISCO Steel Plant (ISP) |
25-50 | 1 MT HDPE Jumbo Bag |
16,800 | 12,500 | |
| Alloy Steel Plant (ASP) |
10-30 | 1 MT HDPE Jumbo Bag |
300 | 150 | |
| Total | 60,940 | 41,850 | |||
Chemical specifications
Manganese: 60.0% min, Silicon: 15.0% min, Carbon: 2.0% max, Phosphorous: 0.35% max and Sulphur: 0.03% max
Tender schedule (IST)
The due date for bid submission and and techno-commercial opening is scheduled on 13 Dec’16 at 13:00 hrs and 16:00 hrs respectively.
Result of 1st Cycle Procurement
The first cycle procurement was conducted on Sep’16 for the tentative requirement of 30,470 MT silico manganese. The following parties had successfully submitted the bid and got awarded by SAIL through reverse auction for its different plants.
| Company | Quantity (in MT) | Price (INR/MT) |
| Vandana Global (Raipur) | 3,000 | 59,100 |
| Maithan Alloys (Kalyaneshwari) | 2,550 | 60,000 |
| Sarda Energy (Raipur) | 3,450 | 61,000 |
| Nilkanth Ferro (Durgapur) | 2,550 | 55,800 |
| Castron Technologies (Jharkhand) | 2,554 | 64,985 |
| Berry Alloys (Andhra Pradesh) | 3,800 | 58,000 |
| Sova Ispat Alloys (West Bengal) | 2,544 | 60,000 |
| Lalwani Ferroalloys (Kolkata) | 6,000 | 59,500 |
Source: SteelMint Research
The given prices are inclusive of excise duty, VAT, entry tax, inland trade and freight.
Domestic Silico Manganese market updates
The demand for silico manganese plummeted hugely post demonetization leading to a plunge in its sales volume.
The producers of silico manganese are facing a huge challenge amid severe liquidity crunch due to the demonetization of the currency leading them to reduce production substantially or shutdown their operations temporarily, as market conditions are unfavorable with no signs of improvement in the horizon.
The rise in production cost coupled with the very poor demand for silico manganese in the market, has made it almost unviable for silico manganese producers to operate at present.
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