India: Vizag Steel Concludes Billet and Wire Rod Export Tender

Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, an Indian government owned steel maker had floated an export tender of 8,256 MT Billet & 5,504 MT Wire rod for Nepal, which expired on 2nd Jan 2018.

According to trade participants report to SteelMint, the company has received good participation on this tender and have been concluded, Billet at USD 510-515/MT & Wire rod at around USD 600/MT on ex-mill basis.

Prior to this, Vizag Steel's 55,000 MT billets export tender for Jan'18 shipment was concluded at around USD 500/MT, FoB India.

Currently, the other large producers are silent for fresh billet & rebars export offers and are eyeing to complete previous bookings which made largely for South East Asia & Middle east.

Induction grade offers

In current week, Durgapur based mills have concluded induction grade billet export deals to Nepal at USD 505-507/MT (ex-mill). Meanwhile, with slight price corrections in domestic market the latest export offers also decline and are assessed at USD 502-504//MT, ex-mill.

Odisha, also one of the major supplier of billet to Nepal and presently the producers here are not interested for exports due to better margins in domestic trades. The local offers for Induction grade billets in Rourkela, Odisha hovering at INR 31,700-31,900/MT (USD 500-503) and buying interest by Nepalese mills are heard at USD 495-497/MT on ex-mill basis.

Nepal domestic Steel Prices Stable

Presently, the local steel prices in Nepal are firm which was rally since couple of weeks. The price stable in line with falling steel prices in Indian market and also due to lack of Nepal's domestic demand.

SteelMint's assessment for commercial grade Rebar in current week stood at NPR 70,000-71,000/MT, (INR 43,700-44,400/MT, USD 688-698/MT), which is similar against last week price assessment. The prices are ex-Birgunj (Nepal), size 10-20mm & excluding VAT @ 13%.