MMTC hopes pig iron exports to bounce back in a year

NINL where MMTC holds 49.9% stake, is the biggest pig iron exporter in the country

Pig iron exports by MMTC controlled Neelachal Ispat Nigam Ltd (NINL) are expected to pick up steam within a year mainly on the back of revival in US economy and steady GDP growth rate posted by China.

Though MMTC has been floating tenders to export pig iron produced by NINL, it has been struggling to find buyers due to tepid demand in the export market. The trading firm hopes a turnaround in the next 12 months. NINL where MMTC holds 49.9 per cent stake, is the biggest pig iron exporter in the country

"Recessionary economic trends have hit pig iron exports. We are finding it tough to find overseas buyers. But we hope the scenario to reverse in a year's time. The US economy which impacts most of the world's economies is on revival. China has been maintaining more or less steady growth in its GDP," said MMTC's chairman and managing director Ved Prakash.

Despite lukewarm response to its tenders in February, MMTC has floated a fresh global tender for pig iron exports on March 17 for 30,000 tonne of pig iron. The latest tender is due for opening on April 6.

Apart from MMTC, another public sector steel maker Rashtriya Ispat Nigam Ltd (RINL) is also finding it tough to find overseas buyers. Over the past couple of months, tenders floated by these two steel PSUs have failed to elicit enough interest from the overseas buyers.

The last successful deal secured by MMTC in pig iron was in January this year when the commodity was sold at $310 per tonne. But given the drop in current demand, the price could fall well below the $300 mark and could be in the range of $270-280 a tonne.

BRIC (Brazil, Russia, India and China) are the major suppliers of pig iron in the international market.

Pig iron produced by NINL has established its acceptance in domestic as well as in international markets because of its high quality. The NINL plant at Kalinganagar in Jajpur district has a production capacity of 855,000 tonne of pig iron per annum.