Vizag Steel Likely to Cancel Wire Rod & Billet Export Tender to Nepal - Sources

Vizag Steel also known as RINL (Rashtriya Ispat Nigam Limited) - a state owned steel maker under the Ministry of Steel, had invited the tender for export of 11,008 MT Billets(90*90 & 75*75mm), 5,504 MT Blooms(150*150mm) and 5,504 MT Wire rods(5.5mm) to Nepal on 20th June.

As per notification, the last date of bid submission was 27th June and the bids given by buyer will remain valid till 2nd Jul'18.

As per market participants the company has received poor response on this tender as bids fetched were lower than its previous export tender to Nepal.

As reported by sources, the highest bid (H1) for the current tender was at around USD 515/MT for Billets (90*90 & 75*75 mm) & for Wire rod maximum bid assessed was at about USD 577-580/MT (ex-mill).

If sources are to be believed, Vizag Steel has denied to conclude this tender for Nepal at such lower bids and have concluded its Oecan export tender in which the bid price was heard about USD 520-525/MT FOB India.

RINL's last billet export tender to Nepal was floated in May-end and concluded at around USD 550/MT for 11,008 MT (equivalent to 4 rakes), ex-mill. However, the company's last Wire rod tender got cancelled due to low bids at around USD 610-615/MT ex-mill.

Indian induction grade billet export offers to Nepal have come down this week amid fall in trades and decline in Indian domestic prices.