India’s state owned mill – Vizag Steel also known as Rashtriya Ispat Nigam Ltd (RINL), had issued a tender on 2nd Feb 2018 for export of 5,504 MT billet & 11,008 MT bloom to Nepal. The material shipment is scheduled for Feb-end & the offer given by the bidder was valid till 13th Feb’18.
SteelMint learned that, the company has concluded this open tender and the total quantity (5,504 MT Billet & 11,008 MT bloom) have been sold at around USD 510/MT ex-mill.
Earlier the market participants were anticipated that the tender may get failed due to sharp fall in Induction grade billet prices as well global scrap prices. However as the billet prices have increased sharply about INR 1,000/MT by medium mills and reached at INR 32,500/MT, USD 508 (ex-Durgapur), the Vizag Steel’s tender also received good response and have been settled.
Interestingly, current export prices are matched with the company’s last export tender which concluded during Jan’18 at USD 510-515/MT of 8,300 MT Billets on ex-mill basis.
Key Updates
1. Indian Induction grade billet export offers to Nepal increased this week and are evaluated at USD 495/MT ex-Rourkela & USD 505-510/MT ex-Durgapur, up by USD 10/MT, Week-on-Week.
2. The medium mills in Durgapur have raised Wire rod (5.5mm) export prices at USD 585-590/MT against last week at around USD 580/MT ex-mill.
3. Nepal’s Billet Import Slump by 9% in Jan 2018. The nation has imported about 70,695 MT billets during 15th Dec’17 to 14th Jan’18 (Nepalese calendar year) as compared to previous month (15th Nov – 14th Dec 2017) at 77,417 MT.
4. Nepal has imported about 31,799 MT long steel & 43,607 MT Flat steel in a month (during 15th Dec’17 to 14th Jan 2018) in which India’s contribution is about 90-93% & China only by 5-10%.
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