India: Vizag Steel Concludes 10,000 MT Bloom Export Tender

Rashtriya Ispat Nigam Limited (RINL) - a state owned steel maker under the Ministry of Steel, had invited a tender for export of 10,000 MT Billets (90*90mm, IS 2830 C20 MMn Gr A) and 20,000 MT Blooms (200*200mm, IS 2830 GrA). However the minimum quantity in both tenders was 10,000 MT. The bid due date was 24th Oct'18 which was later extended till 30th Oct'18. The material delivery is scheduled till 30 Nov'18.

According to market sources report to SteelMint, the company has concluded 10,000 MT Blooms (200*200mm, IS 2830 GrA) deal at around USD 450-460/MT, FoB.

RINL's billet export tender to Nepal - Simultaneously the company had also floated billet (90*90mm) billet export tender to Nepal for quantity of 4 rakes (10,836 MT). Tender due date was 30th Oct'18. According to sources report to SteelMint, the tender received weak response and the highest (H1) bid for export tender was reported at around USD 475/MT (ex-mill). However the tender has not been concluded yet and is still under negotiations. Notably, RINL's previous billet export tender to Nepal floated a month ago was concluded to same party at around USD 503-505/MT ex-mill for about 5,504 MT (equivalent to 2 rakes).

Domestic billet (125*125mm) prices in India is around INR 34,000/MT (USD 462) (del Durgapur), down by INR 400/MT against last week; (GST extra).

Global billet market overview - Global Billet export market remains subdued witnessing limited trades. CIS origin billet export price assessment is around USD 455-460/MT, FoB Black Sea.

Vietnam's domestic steel mill - Formosa Ha Tinh has added to billet supply by 1 MnT in Asian markets since August this year. The company will further ramp up production till 2 MnT pa. This has reduced buying interest of imported scrap as billet offers have turned cost effective.