NINL tender for Pig Iron exports conducted by MMTC has received bids up to USD 374-378/MT on FoB Paradip Port basis, according to trade sources.
MMTC on the behalf of NINL (Neelachal Ispat Nigam Ltd) had floated a tender of 30,000 MT Pig Iron on 17 April which was due on 30 Apr,14 and received highest bid of USD 377.88/MT on FoB Paradip port (India’s East Coast) basis according to trade sources.
Three participants Prime Carbon, MTPL & Stemcor (participated after a long time) had placed their bids, which are almost in line with last export deal settled.
Prime Carbon quoted USD 377.8/MT, MTPL at USD 374.1/MT & Stemcor at USD 374/MT, FoB Paradip.
According to market participants, USD 378/MT (equivalent to INR 22,800/MT) should not be a bad deal for NINL, when their domestic offers are at INR 23,000-23,500/MT (ex-works), with additional quantity discount of INR 500/MT.
Indian Domestic Market
Indian domestic Pig Iron prices have been quite stable at INR 23,000-23,500/MT (Ex Works Basis). However, with rising Steel prices in domestic market, markets are anticipating some hike for the month of May’14. On the other hand, with possibility of mining ban looming in the state of Odisha, merchant Pig Iron manufacturers may hike their prices for the coming month.
“NINL has got a decent deal. They are anyways offering quantity discount of up to INR 500/MT for bookings upto 10,500 MT. We will not be surprised if NINL raises their domestic prices by 300-500/MT for the month of May’14,” Said a trader based in Odisha to SteelMint.
1USD = INR 60.30
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