MMTC invites Sale of 33,000 MT Concast Billet

Indian billet export market is dull owing to increased import duty by Bangladesh. This is creating a major concern for Indian billet manufacturers who are trying to secure buyers in domestic market.

MMTC, on behalf of NINL, has released an expression of interest (EOI) for signing MOU with the domestic buyers for sale of concast billets . The period of sale will be for one year. The EOI should be submitted till 28 July’16 on first-cum-first serve basis.

It should be noted that the company recently started production of 100 X 100 mm billet. This is the first time that the company is offering 100 X 100 mm grade material.

Minimum quantity lifted by the buyer will be at least 33,000 MT +/- 10% of concast billet at the rate of 2,750 MT per month.

The company will consider the prevailing prices mentioned in the valid price circular at the time of actual delivery on ex-NINL basis. The MOU signing party will be given an additional discount of INR 200/MT in the open sale offers declared by MMTC through price circulars. These additional discounts would be offered to parties at the end of the year for lifting of material as per the following slabs:

1. Achieving 60% of Annual Quantity: Discount of INR 100/MT
2. Achieving 80% of Annual Quantity: Discount of INR 150/MT
3. Achieving 100% of Annual Quantity: Discount of INR 2000/MT

Tough time for Indian exporters

India, being a net exporter of billet, exports around 0.7 MnT billet every year, majorly to Bangladesh, Sri Lanka and Africa. However, China is now aggressively selling billet in global market and is offering at USD 320-330/MT FOB China port.

As such, Bangladesh, the major export market for Indian billet, is preferring Chinese billet over Indian billet, and has also slowed down imports owing to hike in import duty and sufficient inventory levels. It is also anticipated that Indian billet will not be able make room as per current Chinese billets offers, forcing them to sell their material in domestic market itself.

Also, a major Indian primary producer, Vizag Steel, was not able to sell the offered quantity in its recent export tender. In its recent export tender, the company offered 70,000 MT billet/bloom for exports. The company remained barehanded at the end as it could not receive bids for billet. However, only one participant showed interest for bloom.