KIOCL Ltd (formerly Kudremukh Iron Ore Company Limited), invites tender from Mine Owner(s)/Lessee(s) for supply of iron ore on long term basis to KIOCL limited by entering into Memorandum of Understanding (MoU) and Agreement.
Mine Owner(s)/Lessee(s) has/have an option to hire machinery/equipment and also utilize services of KIOCL to undertake excavation, crushing, screening and grading of iron ore from the mines.
The Iron Ore Mining Lease shall be situated in Karnataka.
Suppliers should be valid at least for a further period of 10 (TEN) years from the due date of tender.
Fe: 63%: (Fe above 63% will be accepted with bonus and Fe below 63% and up to 61% will be accepted with penalty)
Important Time & Dates:
Bid Submission (Due) Date: 1500 hrs on 28 Nov, 2013
Poor demand, low bookings and liquidity crunch in domestic market has made traders across the country to sell the flat steel (HRC) cheaper by INR 1000-1200/MT.
Current HRC trading prices in Northern Part of the country are in the range of INR 41,800-42,800/MT (inclusive of ED, taxes extra). While, in Eastern parts of the country, prices are hovering at INR 42,500/MT (Inclusive of all taxes).
Primary producers of flat steel across the country have not announced their prices till date. According to market participants all the primary producers are expected to lower their prices by INR 1000/MT.
Bokaro Steel Limited (BSL) a unit of Steel Authority India Limited (SAIL) producing flat steel will be shut down during 11-20 November, 2013, on account of capital repairs in the company.
Spot iron ore price increased with improvement in Steel demand
Shanghai Steel Rebar up by 0.14%
11.4 MnT of mined Goan iron ore to be auctioned
Iron ore export decreased in October
Seaborne Iron ore price increased by USD 2 on Thursday after touching lowest USD 131 on Wednesday which was earlier on 20th September’13.
SteelMint assessed that 63.5/63 Iron ore is at USD 133/MT CNF China and Australian 61.5 PB Fines increased by USD 2 to USD 131 CFR China.
Iron ore price increased with an improvement in demand of steel in China. Chinese President Xi Jinping has shown interest in investment in affordable housing projects. This will help to increase the steel demand.
China Crude steel production decreased in first 15 days of October to 2.107 MnT pd from last 2.152 in late September. Decrease in production is because of lack of demand in Steel and overcapacity of Steel with Steel mills in China as well as because of one week long National day holiday.
Dalian Commodity Exchange remains firm with 0.1% Change to 921 from last Yuan 924 on Wednesday. Dalian commodity touched their lowest Yuan 913 on Tuesday which recovered after upwards movement in Shanghai Rebar Future Exchange.
Shanghai Steel Rebar Future was up by 0.14% to Yuan 3628 on Thursday from last Yuan 3623. Billet EXW price increased by RMB 20 to RMB 2990.
Supreme Court appointed panel has recommend that 11.4 MnT of mined iron ore in Goa to be auctioned and this auction will be overseen by the monitoring committee.
Iron ore Exports in the month of October is decreased by 40% from the ports in India. This decrease in export is because of strengthening Indian rupee against dollar, decrease in Iron ore and steel demand in China.
United States and World Bank will not support overseas coal projects and will not finance them anymore, in support to curb global carbon emission.
US stepped ahead to end financing coal projects overseas and as the US holds most voting power in World Bank. They will not support any upcoming power projects to limit global carbon emission which is majorly responsible for the climate changes and so no finance available for Coal projects.
As per the US Treasury Department, they will end support for coal plants by the World Bank and other international development institutions unless the projects involve new carbon-capture measures or if there is no other economically feasible option in one of the world’s poorest countries.
The major economies accounting for almost half of global coal consumption are the countries like China, India etc. Last year it was estimated by the World Resources Institute that 76% of proposed new coal power would be in China and India, which are not dependent on foreign aid.
It is estimated that mostly new coal-fired plants had been proposed in 10 nations that produce little coal at home including Cambodia, Guatemala, Laos, Senegal and Sri Lanka.
China, a growing financer, is major investor in coal projects than Western nations and multilateral banks.
US is encouraging other nations to go against coal projects and it noted that during visit to Stockholm last month, Obama agreed with the leaders of Denmark, Finland, Iceland, Norway and Sweden that none of the countries would fund coal projects.
According to industry sources bids were received to the levels of INR 69,000 /MT (USD1122 /MT),Ex-Works. SteelMint assessed that quite a few Stainless Steel mills participated in the tender, and actual buying interest was relatively strong as bid levels were in line with prices in the open market.
As is the case, IDCOL does receive lower bids, as buyers look to compensate for the additional logistical costs and other expenses that are incurred in procuring material from IDCOL.
HC Ferro Chrome in India is currently trading at INR 72,000 /MT (USD 1170) Ex-Works basis. Trading was sparse so far this week as major Stainless Steelmakers in China are expected to set their November bid prices within the week.
SteelMint assessed that considering a sluggish stainless steel market, there seems to be no great change in Ferro Chrome and Chrome Ore markets in the near future.
World’s third largest mining giant Rio Tinto moved ahead on selling its majority stake of Australia’s third-largest thermal coal mine to Glencore Xstrata and Japan’s Sumitomo Corporation.
It is to be noted that, this disinvestment by Rio will fetch USD 1.04 billion in its account.
Last year Rio Tinto owned 50.1% stake in the Queensland’s Clermont mine, but as the coal market dipped and Australian coal prices lowered along with higher operating cost, made the company inviable to operate. Rio Tinto is stepping ahead to trim its debt, and planning to sell down its unwanted assets to meet shareholders’ demand by cutting its costs.
It is noted that Rio Tinto has completed deprivation of around USD 3 billion this year including its other countries’ assets.
The biggest international thermal coal trader and producer Glencore Xtrata and Japan based leading group Sumitomo Corporation has taken a strategic step on buying, as Clermont is mostly open cast mine with low cost operation, also its waste ratio is relatively less and saleable coal without washing are 90%. It should be also noted that Glencore Xtrata and Sumitomo Corporation will only inject USD 250 million each, as the deal will be financed for half of the purchased price and it will control larger production of coal.
As reported by media, for the stake in Rio Tinto’s Clermont coal mine , world’s leading traders Trafigura and Adani Enterprices had bid below USD 850 million.
Indian Directorate General of Foreign Trade (DGFT) appoints 5 new agencies for Pre- Shipment Inspection.
With Indian DGFT (Directorate General of Foreign Trade) has made it mandatory for imported metal scrap shipments into India to be accompanied by a Pre-Shipment Inspection Certificate (PSIC) from a DGFT approved Pre-Shipment Inspection Agency (PSIA) from the country the material is being exported from.
For example, If an Indian Buyer imports heavy melting scrap of UAE origin, then a PSIC needs to be issued by a DGFT approved PSIA that has been given DGFT approval to inspect scrap exports from UAE. In the above example Indian Customs no longer accepts PSIC issued from any PSIA that is DGFT approved. The PSIA must be DGFT approved for the country from which the scrap is being exported.
DGFT has approved five new inspection agencies, who can issue Pre Shipment Inspection Certificate (PSIC) are as follows
• Inspectorate International Ltd.
• Novatech Inspection Services LLC
• CWM Survey & Inspection
• Trans Border Safety Control Inspection Services LLC
• M/s Gattini & Co
MRAI, Metal Recycling Association of India, working in interest of scrap importers had earlier informed that many Indian Buyers have imported metal scrap from such countries which don’t have a DGFT approved PSIA for issuing PSIC and now such material has reached Indian Ports and Customs Authorities are refusing to clear the material. Such containers are incurring heavy detention/demurrage etc. and causing financial losses to the Indian Buyers.
Tata steel will commission the first phase of the Kalinganagar project of 3 MnTPA capacity by November or December of 2014, its outgoing Managing Director H.M.Nerururkar said after meeting Odisha Chief Minister Naveen Pattnaik. He, along with the incoming Managing Director T.V.Narendran today met the CM and apprise him on the progress of the company's projects in the state.
Mr. Narendran will take over Charge from Mr. Nerurkar from 1st of November as the company's youngest Managing Director.
” The construction work at Kalinganagar has progressed well and the law & order situation at the area is satisfactory, so we are hopeful that we'll be able commission the first phase by November or December of 2014.”
However, on the Gopalpur project he said that the Phailin cyclone has given a set back to the project, but we are hopeful that we'd be able to start the project soon.”
The company is setting up an Industrial Park including a 4,00,000 tonne per annum (TPA) Rebar Mill and 55,000 TPA High Carbon Ferro-Chrome Plant at Gopalpur.