Monthly Archives: April 2015

India: Sesa Sterlite invites Bids to procure Non-coking Coal

Talwandi Sabo Power Limited (TSPL), a subsidiary of Sesa Sterlite has floated a global tender to procure 0.2 MnT Non-coking coal on CIF west coast and FoR destination basis.

TSPL, a Vedanta Group company and one of Punjab’s largest greenfield Thermal Power Project, has intended to procure 0.2 MnT Non-coking coal on CIF west coast port basis and FoR destination basis.

The scope of work will include Non-coking coal supply on CIF and FoR (Free on Rail) basis i.e. loading into ships,unloading at Indian port, loading into railway rakes, clearances, handling and storage. Unloading of the material from railway wagons will be arranged by TSPL.

Bidder should supply Coal from a single mine and should mention name of the mine in their submitted quotations.

The mentioned quantity will be required for a period of three months with a quantity breakup as 50,000 MT in Jun’15, 75,000 MT in Jul’15 and 75,000 MT in Aug’15.

Specification of Coal

  • GCV (ARB): 5,000-5,800 Kcal/kg
  • Volatile Matter (ADB): 36-40%
  • Ash (ADB): Less than 10%

Important Dates

  • Bid submission date: 11:30 hrs on 11 May’15
  • Bid opening date: 12.30 hrs on 11 May’15
  • Price bid opening date: 15.00 hrs on 11 May’15

India: Proposal for Renewal of LTA on Iron Ore Supply tabled in the Parliament

The proposal for renewal of Long-term Trade Agreements (LTAs) for supply of Iron ore to Japan & South-Korea was presented in the Parliament on 29 Apr, 2015.

NMDC, which has been exporting Iron ore to countries like South Korea & Japan through MMTC is all set to continue its Iron ore supply to these countries. The proposal for renewal of LTAs was tabled in the Parliament yesterday on 29 Apr, 2015.

“Indian government has long term trade agreements (LTAs) for supply of high grade Iron ore to counties like Japan & South Korea. The proposal for renewal of LTA for 3 years w.e.f 01 Apr, 2015 is under way.” – said Nirmala Sitharam, Commerce and Industry Minister

Negotiations on quantity & price will commence after approval of renewal of LTA’s. The export of iron ore is presently under open general license and are determined by availability and international market situations.- she added.

NMDC was the largest Iron ore exporter in FY15 and it exported 2.39 MnT via Vizag port. Iron ore prices in global market fell sharply by 35% in FY15 against FY14 owing to which the miner had incurred losses in its export shipments.

NMDC Iron Ore Exports in FY15


Qty Export Prices
Baila Lump

Baila Fines

Q4 0.72 87.2 71.7
Q3 0.43 96.8 88.1
Q2 0.58 111.9 103.2
Q1 0.66 136.9 122.4
Total 2.39

Qty in MnT
Export Prices in USD/MT, FoB Vizag Port
Provisional data
Source: SteelMint, Customs

Ferro Silicon

India: Ferro Silicon Supply outstrips Demand

Ferro silicon prices were unchanged as there is ample supply of material; although emerging inquires were seen in the market.

Bhutan Ferro Silicon Demand recovering

SteelMint assessed Bhutan-origin Ferrosilicon 70-75% min is being offered at INR 65,000/MT. In the export market, Bhutanese producers are offering Ferrosilicon at around USD 1,120/MT FoB Kolkata.

In Bhutan, there is a rise of demand although producers have kept prices unchanged. Bhutanese producers stated that they have kept prices at the same level as there is excess supply in the market.

“Our business has improved quite a bit after a prolonged weak market. We’d rather stick to the present prices in order to destock and not raise our offers,” stated a Bhutan based producer.

Market sources stated that the supply glut would not help the market to improve and so prices would prevail at this level.

Production Increase in the Indian Ferro Silicon Market

Output in the Indian Ferro Silicon market has increased and producers are offering aggressively. SteelMint assessed the current price for grade 70-75 is INR 64,000 /MT (Ex- Guwahati). Indian producers are of the view that persistent oversupply of the material is pressurizing the market.

A producer from Meghalaya remarked, “There might be a little bit of recovery in demand but now issues arising from abundant supply are approaching due to which the market is pressurized.”

Looking at the present market condition, market participants believe that it may not be long before the market is seen recovering and Ferro silicon prices increasing before stabilizing.

Vizag Steel’s Global Tender for 5,000 MT Ferro Silicon Purchase

Visakhapatnam Steel Plant, one of the major Steelmakers issues a global tender to purchase 5,000 MT Ferro silicon conforming to grade FeSi-73 Al-15, in order to meet operational requirement of its plants.

Quotations will be accepted till 25 May’15 at 10.30 hrs.

On 24 Apr’15, the company issued another global tender to procure 600 MT Ferro Silicon with technical bids to open on 22 May’15.

Exchange Rate: USD 1 = INR 63.5


Indian Government to reduce Export Duty on low-grade Iron Ore to 10% w.e.f 01 June

The decision has been taken, looking at halt in exports from India’s top Iron ore exporting state Goa prior to mining ban and constant decline in Chinese spot Iron ore fines prices.

Since, Nov’14, Iron ore sale via e-auction route in Goa has been kept on hold. 10.1 MnT of Iron ore stockpile is yet to be offered for sale. In FY15, 0.6 MnT Iron ore has been exported from Goa.

Considering the prevailing prices of Fe 58% Iron ore fines at USD 35/MT FOB India, which is mostly exported from Goa, exporters realizations shall stand at nearly USD 7/MT only.

Feature Image - Iron ore


RINL Pig Iron Tender

Vizag Steel’s Global Tender for 5,000 MT Ferro Silicon Purchase

Vizag Steel (RINL) has floated a global tender to purchase 5,000 MT Ferro silicon, inviting overseas and indigenous suppliers.

Visakhapatnam Steel Plant, one of the major Steelmakers issued a global tender to purchase 5,000 MT Ferro silicon conforming to grade IS 1110–1990, in order for meet operational requirement of its plant.

Tender applicants can be manufacturers or suppliers of Ferro silicon from overseas as well as indigenous sources.

Technical Specification

IS Specification: IS:1110 – 1990
Grade: FeSi-73 Al-15
Silicon: 70-75%
Size: 40-100 mm

Quotation of Prices

In case of Indigenous Offers: Quotations should be given on FoR VSP Stores basis including of applicable taxes, duties, levies and freight.

In case of imported offers: Quotations should be given on FoB Load port basis and CFR, Visakhapatnam basis.

Delivery: The delivery of the material will be effected from Jul’15 onwards at the rate of 500 MT/month.

Quotations will be accepted till 25 May’15 at 10.30 hrs.

Note: On 24 Apr’15, the company issued another global tender to procure 600 MT Ferro silicon with technical bids to open on 22 May’15.


Imported Scrap Offers to India rise on strong Global Demand

Containerized scrap offers to India inched up on strong demand in global market and appreciating currency in Europe & Brazil.

Indian market noticed higher offers from global scrap suppliers over strong demand in global market. Current offers for HMS 80:20 from Europe were assessed at USD 280-285/MT , Shredded ISRI 211 grade at USD 300-305/MT on CIF India basis.

Whereas, offers from South Africa for HMS 90:10 (25 MT container loading) were assessed at USD 285/MT and HMS (80:20) from Middle East at USD 295-300/MT CIF India.

Japanese Shredded Busheling scrap ISRI 207 grade offers were assessed in the range of USD 300-305/MT CIF India for June shipments.

Global exporters highlighted that offers have gone up in line with rising prices in Turkey, which is the largest importer of Ferrous scrap in the world. Here, trades for bulk HMS 80:20 have been recorded at USD 275-280/MT CIF Turkey levels.

Scrap exporters also mentioned strong currency as a major factor for rise in Scrap offers in global market. For instance, Euro has appreciated upto 15% in last 2-3 months against USD, Brazilian Real has appreciated about 10% in last one month, whereas South African  Rand by 5% in last one month.

Limited Trade in Indian Market

Indian buyers have been selective and are not making bulk purchases due to falling domestic billet prices, which hit a 4 year low.

“Although offers have gone up, but buying interest is very limited in Indian market. With falling Billet & DRI prices in domestic market, coupled with weak Indian Rupee, buyers are not very keen on taking positions.” said a Scrap importer based in Mumbai.

Also suppliers are not very comfortable with new Pre-Shipment Inspection Policy, which is complicated and adds cost to exports.

“HMS 80:20 offers from Europe were heard at USD 280-285/MT levels CIF India, whereas buying interest was seen at USD 275/MT levels”, he further added.

MRAI seeks extention from Government to adopt new PSIC norms

Metal Recycling Association of India (MRAI) has sought 3-4 months’ time from government of India to adopt new pre-shipment inspection norms , which have been imposed under new Foreign Trade Policy (2015-2020) w.e.f 1 Apr’15. Some clarity is expected to come this week.

Global Scrap Offers (CIF India) as on 30 Apr’15

Particular Origin  Offers in USD/MT
HMS 80:20 Europe 280-285
HMS 1&2 Middle East 280-285
West Africa 270-272
HMS-1 South Africa 285
Middle East 292-295
Shredded US/ Europe 300-305
Australia 295
Busheling Japan 300-305

Source: SteelMint Research


Indian HRC Export Offers Unchanged despite Low Demand

Indian HRC manufacturers continue to hold HRC offers this week despite low buying interest and competitive offers from Chinese, Russian and Japanese manufacturers.

Current offers for IS 2062 grade HRC (2.5 mm) assessed at USD 415/MT, FoB India and USD 405-410/MT for commercial grade; similar to last week’s offer. No major transactions have been recorded in the month of April. Some traders are also offering SAE1008 grade HRC at USD 390-395/MT FOB India West Coast.

A senior executive from a trading house based in Mumbai said, “Indian manufacturers are reluctant to cut offers looking at higher cost of production and better realizations in the domestic market. Offers are assessed at around USD 410-415/MT for premium grade and USD 405/MT for commercial grade on FoB India.”

Net Sales Realization (NSR) from export will be around INR 25,500-26,000/MT. Whereas, domestic realizations would be INR 29,500-30,500/MT on ex- factory basis.

Indian HR Coil prices declined in the retail market in April. Current offers for HRC 2.5 mm assessed at INR 36,000-36,500/MT (including freight cost and excise duty of 12.5%).

Net Sales Realization Calculator

 Particular  Charges
Domestic Price (Inclusive ED) 36,500
Export Offers in FoB 415
USD/INR Rate 63.3
Particular  Domestic Realization Export Realization
Domestic Price 36,500 NA
Freight 1,500 NA
Excise Duty (12.5%) 31,111 NA
Dealers margin 1,000 NA
Net Sales Realization (INR/MT) 30,111


Realization in INR/MT
Source: SteelMint Research

Flat Steel Prices as on 30 Apr’15

Particular Prices
HRC, India USD 410/MT, FoB India
CRC, India USD 460-465/MT, FoB India
HRC, China USD 370/MT, FoB China
HRC, Russia USD 360-365/MT, FoB Black Sea
CRC, Russia USD 450/MT, FoB Black Sea

Source: SteelMint Research


India: Odisha High Court upholds Order on Mine Auction

The Odisha High Court on Wednesday uphold the interim stay on the state cabinet’s decision to auction all mining leases of major minerals except coal. Adjudicating a batch of petitions filed by 13 mining companies including Odisha Manganese and Minerals (OMM), a bench of Justices Indrajit Mohanty and Biswanath Rath has pronounced the order. In the last hearing on 12 Apr’15, the High Court bench had ordered to file a fresh affidavit.

Accordingly, in its affidavit, the state government has informed the court that 18 mines has been given lease extension on the basis of the new MMDR act and another 8 mines has been served show cause notice regarding cancellation of lease.

The Odisha cabinet had come up with the resolution (no.458, notified on date 9 Jan’15) to auction all the lapsed mining leases except coal. The decision was taken on the basis of Supreme Court’s order in May’14 for mining leases that are awaiting second and subsequent renewal. However, several miners including Mideast Integrated Steel, Odisha Manganese and Minerals, Aryan Mining, Kalinga Mining Corporation had challenged the cabinet decision in the High Court.


India: MRAI seeks Extension of 3-4 Months for new Pre-Inspection Norms on Scrap Imports

MRAI with its continuous efforts and meetings with Steel & Commerce ministry has appealed DGFT for additional 3-4 months’ time before implementation of new PSIC rule, though its appeal for replacing videography to photography is already successfully sanctioned.

Indian government on 1 Apr’15 had released a Foreign Trade Policy (FTP) 2015-2020, in which it had added a new regulation of videographing the complete loading & inspection procedure under Pre-Shipment Inspection Certification (PSIC) norms for metal scrap imports.

MRAI (Metal Recycling Association of India) and other related associations tried their best to explain the drawbacks of the policy to the ministry. After a thorough meeting of these associations with DGFT (Directorate General of Foreign Trade), the pre-inspection clause has been kept in abeyance, till further notice. The final notice/decision from the ministry is still awaited, and is expected to be drawn within 2-3 days.

A Relief from Video to Still Photos

The newly added rule of videographing the material in PSIC norms, grabbed the whole attention in the policy. According to associations & importers, this was impractical in the Scrap business. Hence, it was successfully replaced with still photographs by DGFT in the meeting.

Grounds for Appeal for Extension

According to MRAI, the procedure will need time for commencement to fulfill the parameters mentioned by DGFT. Considering new guidelines of policy, MRAI has asked time for:
1.Purchasing the new radiation detecting equipment
2.Arranging & training manpower, according to the qualification mentioned for the material inspectors
3.Re-registration of existing Pre-Shipment Inspection Agency (PSIA) which would be providing approval certificates (PSIC)
4.Registering of new PSIA

“We are in continuous talks with the ministry regarding the modification in the PSIC norms in FTP 2015-2020. MRAI along with other ministries & associations is hopeful and looking forward to the decision by DGFT, as we believe the points we kept were realistic & genuine. We may get to hear final decision from DGFT over the appeal in 2-3 days.”– Mr Sanjay Mehta – Vice President, MRAI.

The PSIAs/associations that represented Indian Scrap industry in the meeting with ministry were as follows-

(i) All India Induction Furnaces Association, Delhi
(ii) North India Importer Association
(iii) Jamnagar Exim Metal Merchant Association
(iv) Metal Recycling Association of India
(v) Institute of Scrap Recycling Industries Inc.
(vi) Bombay Non Ferrous Metal Association Ltd
(vii) Inland Importers & Consumers Association
(viii)  Ahmedabad Non Ferrous Metal Exim Association


SAIL tenders for purchase of 37,100 MT Silico Manganese

BSP, a central procurement unit of SAIL, has invited bids for a tentative purchase of 37,100 MT Silico Manganese from indigenous sources for its various plants.

SAIL, one of the major Steel producers in India, intends to procure a tentative quantity of 37,100 MT Silico manganese for its various plants from indigenous manufacturers. The requirement of material is for a period of four months, starting Jun’15-Sep’15. For RSP, the material should be supplied within Jun’15 itself.

Tender applicants should be Silico manganese or Ferro manganese manufacturers and must posses a plant with installed capacity of 24,000 MT pa. Also, the minimum quantity to be quoted by the tender applicants should not be less than 10,000 MT. It is mandatory to quote a minimum 10% of the tendered plant-wise & size-wise quantity.

The total quantity to be purchased is 37,100 MT, which will meet the requirement of following plants and shall be covered under two markets for the mentioned four months.

Tentative Quantity to be Purchased Plantwise

Plants Covered    Size (mm) Tentative Qty (in MT)
Bhilai Steel Plant (BSP) 10-50 9,300
Bokaro Steel Limited, Bokaro (BSL) 40-100 2,500
Durgapur Steel Plant, Durgapur (DSP) 25-50 13,800
IISCO Steel Plant, Burnpur (ISP) 7,200
Rourkela Steel Plant (RSP) 10-50 4,300


Source: SteelMint Research

The material should contain minimum 60% Manganese. Materials shall be dispatched through roadways and transportation shall be arranged by the bidder including freight charges on door delivery basis. Last date of submission of offers will be on 13 May’15 at 13.00 hrs and technical bids will open on 14 May’15 at 10.30 hrs.

Note: SAIL has issued another tender for purchase of 4,000 MT medium carbon Silico manganese for its Salem Steel Plant with scheduled bids to open on 15 May’15.

Domestic Silico Manganese Prices

On better trading, the domestic Silico Manganese is steady. Market participants are waiting to get Silico manganese market some kind of direction as they believe that it can remain at same levels for the next month.

Silico Manganese Prices

Particular/Delivery Size/Grade Prices Change 1W 2W 1M
Ex-Durgapur 60-14 47,000   0 47,000 47,000 47,000
Ex-Hyderabad 60-14 48,500   0 48,500 48,000 48,000
Ex-Raipur 60-14 46,000   0 46,000 45,750 45,250
Ex- Rourkela 60-14 46,500 0 46,500 46,000 45,500

Source: SteelMint Data