India: MMTC Extends Pig Iron Export Tender; Global Offers Fall

MMTC- India's largest and state-owned trading house, had floated export tender of 30,000 MT non-alloy Pig Iron on behalf of Neelachal Ispat Nigam Limited (NINL). The due date for submission of bids was 14:30 hrs on 08 Jan'19. Amid lukewarm response, the company extended the due date till 18th Jan'19. Now in the latest update received, the tender due date has further been extended till 29th Jan'19.

Why are Indian Pig iron export tenders fetching dull response ?

1. Competitive offers from other nations: SteelMint learned in conversation with market participants that offers from other countries are competitive. Offers from CIS nations is learned to be around USD 330/MT, FoB Black. Overseas buyers (in Italy etc) are eyeing for prices levels of USD 345/MT, CFR which is difficult to achieve from Indian companies considering high domestic prices. Brazil pig iron export offers are heard around USD 335-340/MT, FoB levels.

2. Global scrap offers remain on lower side: Scrap prices in global market have remained on downside. Imported scrap HMS (80:20) prices in Turkey are assessed at USD 287-288/MT, CFR which is lower by USD 10/MT against a month back.

3. High realizations in Indian domestic market : Amid higher realizations in domestic market, Indian pig ion manufacturers might not be ready to conclude export deals and settle for a lower price. As per last domestic price circular of NINL, offers for steel grade Pig iron was at INR 27,400/MT (USD 385) ex-Cuttack Odisha.

Bulk Pig iron exports from India fell 57% in CY18 - Indian bulk pig iron exports fell sharply by 57% Y-o-Y in CY18, as per vessel line up data maintained by SteelMint, and was recorded at 0.24 MnT in CY18 as against 0.58 MnT in 2017, down by 57% on yearly premises. MMTC which exports pig iron on behalf of NINL remained the largest exporter in CY18 at 0.12 MnT.