Vizag Steel, India’s state owned and one of the primary producers, had floated an export tender of 35,000 MT bloom and 20,000 MT billet, which expired on 14 Jun’16, for which delivery is scheduled in late July, 2016.
Sources mentioned that the company has concluded bloom at USD 300-305/MT, FoB Vizag Port (Indian East Coast). Cargo is likely to be shipped to Bangladesh. Vessel freight is estimated at around USD 12-13/MT.
The tender received bids from three participants. Highest bid (H1) was received at USD 299/MT, followed by USD 293/MT and USD 265/MT on FoB Vizag basis (India’s East Coast).
Change in Bangladesh post imposition of import duty on billet
Interest for billet imports in Bangladesh has decreased after the government imposed a regulatory duty of 20% and a VAT of 15% on imported billet. Bangladesh is the major destination for Indian billets.
Last tender (6 Jun’16) of 20,000 MT by SAIL (Steel Authority of India Limited) was canceled due to low bids.
Global billet prices as on 23 Jun’16
| Particular | Delivery | Grade | Currency | Price | W-o-W | M-o-M |
| China Export | FOB China | 150*150 mm | USD | 280-290 | 0 | -22.5 |
| India Export | FOB Vizag | 150*150 mm | USD | 295-300 | -2.5 | -75 |
| CIS Export | FOB Black Sea | 125*125 mm | USD | 310-320 | +5 | -43.75 |
| South East Asia Import | CFR SE Asia | 150*150 mm | USD | 285-295 | – | – |
| Bangladesh Import | CFR Chittagong | 150*150 mm | USD | 300-310 | 0 | -30 |
| Middle East Import | CFR Dubai | 150*150 mm | USD | 310-315 | +5 | -30 |
| Turkey Import | CFR Turkey | 125*125 mm | USD | 320-325 | +5 | -43.75 |
| India Domestic | Ex-Mumbai | 100*100 mm | INR | 22,500 | +200 | -400 |
| China Domestic | Ex-Tanshang | 150*150 mm | RMB | 1,830 | -20 | -40 |
Prices in Currency/MT
Source: SteelMint Research
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