India: Vizag Steel Billet Export Tender Surprises Market with High Bids

Rashtriya Ispat Nigam Limited (RINL) also known as Vizag Steel had floated a tender for export of 40,000 MT billet and bloom. The steel maker had floated tender for billet : 65*65mm (10,000 MT), 75*75mm (10,000 MT) and bloom 150*150mm (5,000 MT), 200*200mm (15,000 MT).

The material delivery for bloom is 31 Mar'18 and 24 Apr'18 for billets.

According to market sources report to SteelMint, the steel maker has concluded the tender for 65*65 mm billet export at around USD 535/MT, FoB India. And other lots are under negotiations with the buyers. The recent tender concluded has taken Indian billet export prices to almost two months high as these price levels were seen in beginning of Jan'18.

Last week India's Vizag Steel concluded 10,000 MT 90*90mm billet export tender at around USD 520/MT FoB. And 10,000 MT 150*150 mm bloom tender was concluded at around USD 510-515/MT, FoB India.

Domestic billet prices in India are hovering around INR 35,300/MT (USD 544) (ex-Mumbai, GST@18% extra) for 125*125mm billet.

Global Billet Market Overview:

1. Global billet export offers remain on the higher side on higher scrap and global graphite electrode prices. Billet export offers from CIS nations increased to USD 535/MT, FoB Black Sea.

2. Billet import offers from CIS nations assessed at around USD 555-560/MT, CFR South East Asia.

3. Chinese domestic spot billet prices for 150*150mm billet in Tangshan is seen at RMB 3,770/MT (17% VAT included), down against RMB 3,800/MT in beginning of the week.

4. Billet export offers from Iran are assessed around USD 515-520/MT, FoB.