Vizag Steel's Billet Export Tender to Nepal Fetches Lower Bid - Sources

Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, had invited a tender for export of 10,836 MT billet (IS2830 grade, 90*90mm) and material delivery scheduled by 30 Nov'18. The due date of the tender was 30th Oct'18 till 11:00 AM (IST).

According to sources report to SteelMint, the tender received weak response as nearly two company's participated in the tender. Also the H1 bid was quite low than the company's previous export tender to Nepal.

The highest (H1) bid for current export tender reported at around USD 475/MT (ex-mill) through a renowned mill in Nepal. 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).

Demand for Induction grade billet remains low from Nepal based re-rollers

Amid festive mood in Nepal, the re-rollers being cautious to procure induction grade billet from the producers based in East India - Durgapur & Odisha.

As per Durgapur based manufacturers buying interest have reduced to 20-40% as re-rollers in Nepal are anticipating further fall in Indian export prices and are maintained sufficient billet stock with them amid limited productions of long steels.

The current billet export offers to Nepal by medium mills in Durgapur reported at around USD 460-465/MT & for Wire rod at close to USD 545/MT, ex-mill.

As per them, yesterday small parcels of Billet sold to Nepal at close to USD 460-462/MT ex-mill at Durgapur.