Nepal Re-rollers Receive Competitive Billet Offers from Vizag Steel – Sources

Vizag Steel, a state owned and India’s one of the largest steelmaker, is heard to have offered square billet to Nepal based re-rollers at a very competitive price.

Current offers for 90*90 mm billet are assessed at USD 330-335/MT ex-Vizag. The company’s last export tender of 150*150 mm bloom was concluded at USD 330/MT, FoB East Coast India. Blooms are generally USD 30-40/MT cheaper than billet. However, the company’s officials were not available for any comment.

Sources mentioned that in order to match SAIL’s (Steel Authority of India Ltd) offers, Vizag Steel has to offer at such low prices.

A Nepal based re-roller stated, “SAIL is currently offering at USD 345-350/MT, ex-works. While, Vizag Steel offers are in the range of USD 330-335/MT, ex-works. There is a freight difference of around USD 15/MT and transport from SAIL is cheaper. Most of re-rollers are preferring SAIL over any other private manufacturers.”

Recently, few deals from private billet manufacturers were heard to be settled at USD 345/MT ex-works in West Bengal.

NINL is offering 480 MT concast billet at INR 22,500/MT ex-NINL, which is valid till 18 Aug’15. The company’s export tender for total 110,000 MT billet and bloom is going to expire on 12 Aug’15. Moreover, another export tender for 110,000 MT billet and bloom is valid upto 24 Aug’15.

Vizag Steel commissioned a 4 MnT steel capacity plant in April. The modernization project is underway and it take another two years. The company will reach full capacity of 7.3 MnT in FY18. The target for this year is to produce 5 MnT hot metal and 4.1 MnT saleable steel.

Billet and Bloom Prices

Source: SteelMint Research