Monthly Archives: April 2014

Indian Pig Iron Export Tender receives Bid at USD 374-378/MT FoB

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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Pellet & DRI summit

 

India: TMT Re-bar Offers gain Strength; Conversion Margin increased

637196TMT Re-bar prices raised upto INR 2,700/MT in a month’s time owing to high semi finish prices and low production on labour shortage.

Presently, TMT market is witnessing upward trend. Offers have gained strength upto INR 2,700/MT M-o-M.

Market Participants believe the reasons are:

1. Labour Shortage: Elections & summer season have created labour shortage in rolling mills which led to low production and so on high TMT offers.

2. High Semi Finish Offers: Shortage of Scrap in the steel market pushed semi finish prices up. MS Ingot & Sponge iron prices increased upto INR 2,100/MT & INR 1,200/MT M-o-M respectively. Sources said that shortage of Sponge iron could also support high semi finish offers.

3. Demand remains above Average: Decent demand of TMT supporting steel market high offers. In past few days, we have seen sellers quoting high offers and buyers first remain reluctant and gradually accept it, as correction could not able to stay. Market participant said, presently local demand is below average, whereas other state buying remain firm.

High TMT Offers increased Conversion Margin

Ingot to TMT conversion margin has increased by INR 1,050/MT, INR 400/MT and INR 250/MT in Raipur, Mumbai & Muzaffarnagar respectively.

In this month, TMT prices increased upto INR 2,700/MT M-o-M, while MS Ingot offers moved up by INR 2,100/MT. Moreover, TMT gauge difference has increased by INR 500-700/MT in a few states such as Chhattisgarh, Hyderabad & Maharashtra (except Mumbai), which led conversion margin to rise.

Whereas, primary producers are likely to boost up their offers by INR 700-1,000/MT owing to shortage of material (TMT) and hike in secondary TMT prices.

 

Semi Finish Viability from Central & Eastern India improves further

MS Ingot prices in Mandi Gobindgarh have increased by INR 300/MT on yesterday (29 Apr, 2014) trade. Similarly, prices in Central & Eastern region have moved up by INR 100-300/MT in Raipur, Rourkela & Durgapur on moderate buying volume.

SteelMint learned, prices are soaring up regularly by INR 200-400/MT owing to feasibility of material supplied from Durgapur, Rourkela & Raigarh to the region. Durgapur has supplied MS Billet at INR 34,500-34,700/MT, Rourkela offered at INR 34,800-35,000/MT and Raigarh at INR 35,100/MT delivered Mandi Gobindgarh. It’s also been heard that Durgapur is supplying material to Mandi at good quantity.

Similarly, Raipur & Rourkela are selling Sponge iron to Maharashtra continuously as manufacturers of semi finish & finished steel prefer to consume Sponge over Scrap as its shortage and high price remain concern. Imported Scrap offer from Dubai increased by USD 15-20/MT (INR 900-1,200/MT) CFR Mumbai.

Sponge Offer for Other Location

  • Raipur’s Sponge (Lumps; 79-80 FeM) is being offered at INR 24,400/MT FOR Jalna
  • Rourkela’s Sponge (Lumps; 78 FeM) offered at INR 23,500/M FOR Jalna
  • Bellary’s Sponge Pellet (77 FeM) is being offered at INR 21,800/MT FOR Wada(Mumbai)
  • Bellary’s Sponge Pellet (77 FeM) offered at INR 21,500/MT FOR Jalna

Manufacturers commented, “Demand in local market remains volatile that divert the material to other states. Low cost of electricity, availability of Sponge iron & easy transportation increases the competency of Central & Eastern India to supply material at discount of INR 500-800/MT to other states.

Note: Prices are inclusive of freight & CST; advance payment/next day payment.

 
Steel

Odisha Mining Ban – Sponge Manufacturers fear Temporary Suspension

112In the most awaited hearing on illegal mining in Odisha, the Supreme Court on 28 Apr, 2014 against a PIL filed by NGO named Common Cause, has left Indian mining & steel industry in panic.

The Supreme Court has reserved its interim order with a slight hint that court may not put a blanket on mining ban in Odisha but may temporary  suspend mining operations of 40 mines running under deemed renewal.

Sponge & Steel manufacturers fear temporary mining embargo in Odisha, which may hamper supply of Iron ore for short term, till the state government comes out with some decision over pending applications for renewal of mining leases. Odisha is the largest Iron ore producer, having an annual production of above 65 MnT (27 MnT captive and 38 plus MnT for merchant sale).

Manufacturers fear if mines running under deemed renewal gets suspension notice; almost 5-6 MnT of Iron ore will wipe out from merchant market.

Trade sources based at Odisha stated, “Mining ban in Odisha will the last nail in the coffin, impact may be severe. It is heard that some manufacturers have offered high rates to transporters in order to lift Iron ore booked in different mines. Transport charges have gone up by INR 300-400/MT.”

In the previous report by Shah Commission, it was noted that about 109 mines are operating under deemed renewal with delayed EC or without EC. Some of the mines running on second deemed renewal is as follows:

List of 26 mines, likely to get impacted. These names have been named in CEC report. There are total 109 mines listed which are working under deemed renewal and these 26 mines (attached) are working on second deemed renewal.

Name of Lessee

Name of mines

MoEF approval date

Upper Limit of Production (MT)

Date of Expiry of Lease Period

 Remarks

Bhanja Minerals

Inganijharan

03 Sep’08

                    240,000

26 Feb’93

Not Operating

Dr. S Pradhan

Balita

17 Jan’08

                    800,000

31 Jan’84

Not Operating

Dr. S Pradhan

Inganijharan

24 Aug’07

                    240,000

31 Jan’84

Not Operating

OMC

Khandbandh

15 Dec’08

                1,000,000

30 Nov’93

Not Operating

OMC

Gandamardan (Block A)

16 Jan’09

                    350,000

21 May’93

Not Operating

OMC

Kurmitar

02 Sep’08

                2,400,000

28 Apr’85

 Operating

Gandhamardan Sponge Iron

Putulpani

24 Aug’07

                    360,000

07 Apr’94

Not Operating

Essel Mining

Kasia

16 Jun’06

                7,500,000

13 Sep’85

Not Operating

K N Ram & Co.

Roida II

05 Mar’08

                2,200,000

02 Sep’87

Operating

Kalinga Mining Corporation

Jurudi

10 Dec’08

                    101,346

21 Jun’93

Operating

SAIL

Bolani

23 Apr’98

                5,650,000

10 Apr’90

Operating

Tata Steel

Malda

13 Apr’07

                    550,000

12 Aug’90

– 

R P Sao

Guali

30 Nov’07

                1,800,000

26 Jun’93

Not Operating

B C Deb

Inganijharan

 –

– 

19 Nov’73

Not Operating

B D Patnaik

Kalaparbat

 –

– 

30 Jul’89

Not Operating

BPMEL

Thakurani

 –

– 

30 Sep’84

Not Operating

OMC

Sakradihi

 –

– 

28 Dec’89

Not Operating

OMC

Dubuna

 –

– 

08 Sep’91

Operating

Kalinga Mining Corporation

Jurudi

 –

– 

21 Jun’93

Operating

Kalinga Mining Corporation

Jurudi

– 

21 Jun’93

 – 

M G Mohanty

Ganua

– 

29 Nov’91

Not Operating

T B Lal & Co.

Kasia- Barpada

– 

01 Dec’87

Not Operating

T B Lal & Co.

Jajang

– 

10 Oct’91

Not Operating

Matadin Sarda

Khajuridiha

– 

30 Aug’87

Not Operating

S C Padhi

Bansapani

– 

28 Nov’93

Not Operating

BPMEL

Dalki

– 

30 Sep’74

Not Operating

Data extracted from CEC report
Still there is no official declaration by the Odisha Government.

NMDC to Benefit

Biggest beneficiary in any adverse order on Odisha mining will be NMDC, which is the largest Iron ore mining company in India. Sources say, any embargo in Odisha will increase demand and prices for Iron ore from NMDC.

 

 

Pellet & DRI summit

 

 

 

 

 

 

 

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Indian Iron Ore Exporters hold Offers on Falling Spot Market

Indian Iron ore export noticed a negative growth in last few years owing to high duty, differential freight charges and regulatory measures. This has slowed down mining activities.

Over and above this, falling Iron ore prices in Chinese spot market and fluctuating Indian currency, has left Iron ore exporters with no other option but to cut down on their exports.

With recent fall in Chinese market, low grade Iron ore prices have fallen to such a level that Indian exporters have to hold their offers. According to them, the prevailing cost of export is higher by USD 7-9/MT on current prices in the spot market.

Say for an instance, Fe 58% Iron Fines with Alumina and Silica content above 7-8%, is being asked for USD 84-85/MT CFR China or USD 65-66/MT on FOB basis (including demurrage and misc. expenses). However, current cost of export is not less than USD 72-73/MT on FOB Basis.

“There is hardly any parity in Iron ore exports, most of Indian Iron ore traders and exporters are eyeing buyers in domestic market, which will certainly give them a better prices.” said an exporter based in eastern region.

Indian exports of Iron ore stood at around 15-16 MnT in FY14 against 18 MnT in FY13. However, with supreme court’s order on liquidation of stock and resumption of mining operations in Goa, will increase exports and may go up to 23-25 MnT in FY15.

 

India: OMC’s Tender for Sale of Ferro Materials

Odisha Mining Corporation (OMC), a state government undertaking company, is offering Chrome ore (CO), Chrome Concentrate (CC) & Manganese ore for sale.

There are two tenders scheduled on 14 & 15 May, 2014 at 15:00 hrs

Tender 1

Sale of Chrome Ore (Friable) & Chrome Concentrate

Sealed tenders are invited for sale of various grades of Chrome ore (Friable) & Chrome Concentrate lying at Paradip port

Eligibility

  • Bidder should be end user of Ferrochrome, refractory, chemical finished products in their plant.
  • Traders & beneficiation units/processing units could not participate

Base price is inclusive of royalty, CST against C-Form is 2% and Entry Tax on VAT 1% without E-15 & 0.5% with E-15.

Material Detail

Specifications

Chrome Ore (Friable)

Chrome Concentrate

Grade

Cr2O3: 38-50%

48-50%

Quantity

6,525 MT

188 MT

Location

Paradip Port

Paradip Port


Total Quantity:  
6,713 MT

Place & Mode of Delivery: Ex-Plot of OMC  at Paradip port

Bid Submission Due Date: Before 13:00 hrs on 14 May, 2014

Bid Opening Date: At 15:00 hrs on 14 May, 2014

Note: Tender is only for end users producing Ferrochrome and not applicable for traders, beneficiation & processing units.

Tender 2

Sale of Manganese Ore

Sealed tenders are invited for sale of different grades of Manganese Ore available at Barbil Railway Siding in Keonjhar district

Quantity: 604 MT (approx)

Grade: Mn 28-34%

Eligibility: Ferro Manganese, Silico Manganese Plants, Ferro Alloys Units including Traders can participate in this tender.

Place & Mode of Delivery: Barbil Railway Siding in Keonjhar district

Bid Submission Due Date: Before 13:00 hrs on 15 May, 2014

Bid Opening Time: 15:00 hrs on 15 May, 2014

 

India: Structure Market on a Slow Side; Prices remain Unchanged

Despite of poor buying for heavy Structure section, manufacturers are not able to cut offers because of higher semi finish offers.

From last two weeks, buying in heavy section slow down, while high Ingot & Billet prices hold the prices on same level. Demand for light Structural material is still average and expected to be on same level in coming days.

Most of the major markets are more or less same. Mumbai & Ahmedabad market are stable from past one week. While, Durgapur & Hyderabad offers increased by INR 100/MT & INR 300/MT respectively in a week’s time.

Prices in Hyderabad moved up on improved semi finish prices. Meanwhile in Durgapur, demand from nearby markets supported price hike. Whereas, today (29 Apr, 2014) prices in both cities are unchanged.

Raipur’s light Structure manufactures offered Structure at higher prices compared to yesterday (28 Apr, 2014). Prices raised by INR 100/MT as Ingot offers inched up by INR 100-200/MT.

Ghaziabad based manufacturers have also increased their Structure offers by INR 100/MT.

Market participants anticipate labor shortage in coming days because of summer.  Also, low inventory support prices to firm, according to them.

City-wise Structure Prices as on 29 Apr, 2014

City

Structure

Price

Mumbai

40 Angle

37,700

75 Channel

38,700

150 Beam

38,900

Ahmedabad

40 Angle

35,500

75 Channel

35,700

150 Beam

36,300

Raipur

50 Angle

34,400

75 Channel

34,900

150 Beam

35,000

Durgapur

40 Angle

35,600

75 Channel

35,600

150 Beam

36,300

Hyderabad

40 Angle

36,500

75 Channel

37,000

150 Beam

37,000

Note: All basic prices, loading & taxes extra

 

 

 

India: NALCO invites Bid for Procurement of Steam Coal

National Aluminium Company (NALCO), a government of India Enterprise, invites bid for procurement of Steam Coal for its Steam & Power Plant at Damanjodi, Odisha.

General Conditions

  • Coal prices should be quoted on FOR basis, from the dispatch point (for domestic supplier)/CIF port of discharge (Paradeep / Visakhapatnam) in India (for high sea sale) terms. Irrespective of sale terms, the seller has to arrange all logistic activities
  • For domestic sale terms: Prices are inclusive of all taxes & duties, except entry tax to Odisha. The entry tax for Odisha is to be borne by NALCO
  • For high sea sale terms: All taxes & duties, including import duties and statutory port charges are to be directly deposited on NALCO’s account. The applicable taxes & duties should not be included in the quoted prices

Specifications

Parameters

Range

Total Moisture

10 -20%

Fixed Carbon

8 -20%

GCV

5,800 -6,500 Kcal/kg

Volatile Matter

25- 45%

Size

0 -50 mm


Grade:
GCV 6,300 Kcal/kg

Total Quantity: 75,000 MT (+/- 10%)

Delivery Period

  • Requirement of Coal is on urgent basis. The first rake shall be dispatched within 30 days from the date of placement order
  • Thereafter, maximum 1 rake on a single calendar day is to be dispatched every 7th day from the dispatch of a rake

Important Time & Dates

  • Bid submission due date: 11.00 hrs IST on 15 May, 2014
  • Bid opening date: 11.30 hrs IST on 15 May, 2014

Note: Any bid for quantity less than 50,000 MT shall not be considered.

 

Indian Fe 58% Iron Ore Fines decline by USD 4-5/MT

Chinese spot Iron ore fines prices touched 6 weeks low today.

Iron ore fines (Fe 58%) prices are standing at USD 87/MT CFR China. Yet, no trades have taken place at these price levels. Fe 62% Fines prices is standing at USD 109/MT CFR China. In last one week, prices lose USD 3-5/MT.  

Stock are All Time High at Chinese Ports

Iron ore stock at major Chinese ports is in excess of 110 MnT in the present day i.e. an all time high. Banks in China aren’t easily giving away loans for the reason that there is a slowdown in Iron ore procurement, giving the impression of feeble market situation.

Iron Ore Fines Prices

Country

Grade (Fe %)

FOB

CNF

India

63.5/63

92

110

63/62

91

109

61/60

85

103

58

69

87

Australia

62

107

58

89

Brazil

64.2

116

Prices in USD/MT
Source: SteelMint Research

 

India: NTPC floats Tender for Purchase of Imported Coal

NTPC, a Government of India Enterprise, invites bid for purchase of 7.0 MnT of imported Steam Coal for its various plants/units through various Indian ports on FoR basis.

Material will be imported through various Indian ports at various plants/units namely Simhadri, Ramagundam, Talcher Kaniha, Farakka, Kahalgaon, Barh, Rihand, Vindhyachal, Dadri, Sipat & Mouda Power plants.

General Conditions

  • The bidder should have experience of import/export and supply (including handling & port operation) of minimum 0.5-1.0 MnT of any dry bulk commodity like Coal, Iron ore, Fertilizers, Chemicals, Cement etc. Any firm based in India, which have supplied the above materials for a continuous period of 12 months in past 3 years reckoned from the date of Techno Commercial bid opening is eligible to apply.
  • The average annual turnover of the bidder in the preceding 3 financial years as on the date of Techno-Commercial bid opening should not be less than INR 7.6-11.4 billion or in equivalent foreign currency.
  • Net worth of the bidder as on the last date of the financial year immediately preceding the date of Techno-Commercial bid opening should not be less than 100% of its paid-up share capital.
  • Bidders scope of work are arranging vessels, stevedoring, handling, storage, port clearances, arranging railway rakes, loading, transportation and delivery at NTPC power stations. All other activities for clearing and forwarding of the consignments like customs clearance, coordination with ports, Railways and any statutory authorities shall also be part of Scope of Work of the Successful Bidder. All liaisons, coordination with Coal mine (s) outside India, coordination at load port, discharge port, Railways handling agents etc.

Unloading: Unloading of Coal at NTPC Power stations end from Railway Wagons shall be arranged by company.

Plant-wise required Quantity & Bid Opening Time

Name of Plants

Quantity (MnT)

Bid Opening Time on 05 Jun’14 (hrs IST)

Talcher Kaniha, Farakka, Kahalgaon & Barh

2.25

15.00

Simhadri & Ramagundam

2.05

15.30

Dadri, Sipat & Mouda

1.55

16.00

Rihand & Vindhyachal

1.15

16.30


Total Quantity:
 7 MnT

Important Time & Dates

  • Bid receipt due date:14.30 hrs IST, 05 Jun, 2014