Vizag Steel also known as RINL- a state owned Indian steel maker under the Ministry of Steel, had invited the tender for export of 11,008 MT Billets (4 rakes) and 5,504 MT Wire rods (2 rakes) to Nepal. The tender’s bid submission due date was on 1st Jun’18 and delivery period scheduled by June-end.
SteelMint learned from trade participants that the tender received good response in which 2 rakes of Billet (5,504 MT) have been booked and H1 bid received was at around USD 550/MT (ex-mill), while the rest of quantity (2 rakes) is under negotiation mode which is likely to get concluded at similar prices.
However, the bid for the Wire rod tender reported were lower than the company’s expectations of around USD 640-650/MT, ex-mill. As per sources, the H1 bid price for Wire rod (5.5mm) tender was at close to USD 610-615/MT. Owing to disparity in fetched bids and company’s expectations, the company might not conclude the tender.
Prior to this, RINL’s last export tender for Nepal was floated during mid of Apr’18 to sale about 22,016 MT Bloom (150*150mm & 200*200mm). As per reports the company were able to sold limited quantities at around USD 510-515/MT ex-mill due to low participations as there are couple of mills only in Nepal who can roll max size of billets and are most of mills can roll billet upto 100*100mm.
Induction grade producers receiving active participation
The steel mills based in Durgapur & Rourkela, East India have reported good response for induction grade billets exports even though prices have continued to surge.
As per producers in Durgapur, the current offers for induction route billets (100*100mm) for Nepal is being quoted at USD 555-560/MT ex-mill and the deals already have been take place at USD 545-550/MT (ex-mill), a day ago.
As per trade participants, currently the medium/small mills in Nepal didn’t have sufficient stock for raw material – Billets to continue their operations for long term, hence for quick deliveries purchases are actively taking place at higher prices.
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