Vizag Steel Fails to Get Bid for 125,000 MT Bloom Export Tender

Vizag Steel, India’s leading and state owned steelmaker, failed to receive bids for its 125,000 MT bloom (150*150mm) export tender, which closed on 25th May 2015.

Vizag steel floated export tender of 10,000 MT billet (95*95 mm) and 125,000 MT bloom (150*150 mm) in the month of May.

Sources mentioned that there was only one participant for billet and no participant for bloom. Last tender of bloom was closed at USD 370/MT and billet at around USD 395-400/MT FoB India East coast.

Bangladesh based re-rollers have slowed down their billet imports on anticipation that government will increase import duty in upcoming budget. Bangladesh is a major buyer for Indian billet.

“Bangladesh is a big market for Indian blooms and billets. With proposed hike in import duty on billet and blooms, steel mills have almost stopped their purchases. Also mills have imported significant quantity in last 2-3 months,” said an importer based in Bangladesh.

Vizag Steel may cut Bloom Prices

Vizag Steel may cut domestic bloom prices for June deliveries looking at poor response in export tender. In the month of May, the company had cut prices by INR 500/MT, after which offers for bloom were at INR 24,750/MT (Basic, excluding Excise) ex- Vizag and INR 26,500/MT (Basic, excluding Excise) ex- Hyderabad.

 Prices as on 27 May’15

++ (Excluding Excise and VAT/CST)
Source: SteelMint Research