Indian Steel Export Tender to Nepal Receives Limited Participation - Sources

A state owned steel maker under the Ministry of Steel, had invited tender for export of 8,127 Billets, 8,127 MT Wire Rod and 5,418 MT Bloom to Nepal on 21st Oct'19. The bid due date for the tender was on 24th Oct, which was valid till 31st Oct'19 and delivery has been scheduled by 30th Nov'19.

As per market sources report to SteelMint, the company may cancel export tender to Nepal for all products due to low bids received than the company's expectation amidst limited participation.

Participants of this tender has reported, highest (H1) bids for Billet at around USD 350/MT & for Wire rod at near to USD 390/MT ex-mill.
However as per them, company is looking to conclude billet tender at bids higher by USD 15-20/MT than bids received. The freight cost to Nepal reported at around USD 40/MT, CPT Raxaul border.

Prior to this, the company has cancelled couple of export tenders to Nepal due to low bids which was floated during 1st week of Oct'19 & mid of Nov'19, in which bid prices was near to current highest bids.

As per trade sources, the local steel demand in Nepal remained weak, which in turn fall in steel production by about 40-60%, this led to slow down purchase of raw materials from India.

-- One of the large mills in eastern India stated no fresh deals since mid of Oct'19, however offers reported at around USD 400/MT for Billet & USD 460/MT for Wire rod, CPT Raxaul border, Nepal.

-- Meanwhile offers of the mid scale mills (induction grade steel) were learned at around USD 390/MT for Billet & USD 445/MT for Wire rod, CPT Raxaul border, Nepal.