Vizag Steel Concludes 20,000 MT Bloom Export Tender at Lower Price – Sources

Vizag Steel (Rashtriya Ispat Nigam Ltd), a state owned enterprise, has concluded 20,000 MT bloom (150*150 mm) export tender at a lower price, according to market sources.

The company had floated a tender of 30,000 MT bloom and 20,000 MT open to all countries that expired on 26 May’16.

According to sources, the company has concluded 20,000 MT bloom at USD 315/MT, FoB Vizag Port (India East Coast) and likely to be shipped to Bangladesh. Vessel freight from Indian East Coast to Bangladesh is approximately USD 15-20/MT.

Last tender was concluded at USD 363/MT, FoB

Last tender by RINL was concluded at USD 363/MT, FoB in the month of Apr’16. Prices have dropped on account of two reasons:

1. Falling prices in Chinese market: Chinese suppliers have cut their billet export offers significantly on account of falling domestic prices. Current offers for 150*150 mm Chinese billet are hovering in the range of USD 300-305/MT, FoB China, which is equivalent to USD 320/MT, CFR Bangladesh.

2. Change in duty structure in Bangladesh: Bangladesh government is likely to impose a regulatory duty of 20% on billet imports, which will be applicable for all the countries. Earlier, Indian exporters use to enjoy duty benefit under SAFTA agreement.

Global billet prices in week 23

Prices in Currency/MT
Source: SteelMint Research