Indian Billet Export Tender fetches Lower Bids

Indian Billet export tender fetched bids lower by USD 50/MT owing to down global market.

Falling Billet offers from Chinese & Russian exporters have weighed upon Indian Billet export tender results. Recent tender of 80,000 MT Bloom/Billet by Rashtriya Ispat Nigam Limited (RINL) has fetched bids lower by USD 50/MT from previous trade.

RINL had floated an export tender of 70,000 MT Bloom and 10,000 MT Billet in the month of November, which closed on 2 Dec’14. The tender received only bid by a Swiss based trader, Duferco.

The company bid for 5,000 MT Billet at around USD 436/MT and 10,000 MT Bloom at USD 419/MT FoB Vizag Port, according to sources. These bids are lower by almost USD 50/MT from last tender, which concluded in November. The last tender received bids at USD 467/MT for Blooms/Slabs and USD 488/MT for Billets.

RINL has almost finalized the bid and according to sources, the cargo will be exported to Srilanka.

Lower offers from China & Russia

Billet offers have fallen across the globe on the backdrop of falling Scrap & Iron ore prices. There are quite a lot of offers from Chinese & Russian sellers at about USD 440-450/MT CIF South Asian countries.

Billet export offers fall drastically in CIS countries owing to weaker currency. Russian Ruble and Ukrainian Hryvnia have corrected by up to 40-45% in last few months because of falling crude oil prices. Offers from Russia were heard in the range of USD 400-405/MT FoB Black Sea.

Billet Prices as on 5 Dec, 2014

Reference prices
Source: SteelMint Research