India: Vizag Steel Concludes 15,000 MT Billet Export Tender

Rashtriya Ispat Nigam Limited (RINL)- the state-owned steel maker under the Ministry of Steel, had invited tender for export of 10,000 MT Billets and 40,000 MT Blooms. Bid due date was till 04 Jan'19 and bid validity was till 11 Jan'19. As per the delivery schedule, last date of delivery period shall be 15 Feb'19.

According to market sources report to SteelMint, the company has concluded the 15,000 MT bloom (150*150mm, IS 2830 C20 MMn Gr A). The tender was heard to be concluded at USD 414-417/MT, FoB India. The material had specifications -- C: 0.17-0.23%, Mn: 0.6-1%, Si-0.15-0.35%, P:0.045% max, S:0.045% max.

As per sources, tender for other offered lots of sizes 200*200mm bloom did not manage to fetch bids so was thus cancelled. Also ocean export tender for 90*90mm billet remained un-awarded as the company was heard to have fetched better response in export tender for Nepal.

Global Billet Market overview:

1. Global billet export offers remain weak. Offers from CIS nations is heard around USD 395-400/MT, FoB Black Sea

2. Vietnam's domestic mill - Formosa Ha Tinh is heard offering billets at USD 430/MT, FoB which is equivalent to USD 435-440/MT, CFR south Vietnam.

3. Billet export offers from Iran moved down last week and was assessed at USD 370-380/MT, FoB Iran.

4. Domestic billet (100*100mm) offers in India are assessed around INR 33,100/MT (USD 465) (ex-Mumbai), GST extra

5. Domestic billet prices in China have weakened after observing a hike on Monday. Current billet prices in Tangshan (China) is around RMB 3,380/MT ex-factory, including tax ; down RMB 30/MT against yesterday's close.