Vizag Steel, India’s state owned steel maker and one of the largest exporters of billet, had floated a tender for export of 40,000 MT billet, which closed on 18 Jul’16. Tender comprised of 10,000 MT billet (100*100 mm) and 30,000 MT bloom (150*150 mm).
According to sources, there were about 5-6 participants and highest bid was recorded at around USD 305/MT, FoB Indian East Coast for bloom. Sources also mentioned that Vizag Steel has not concluded the tender and is currently negotiating with the bidders.
Last tender (first week of Jun’16) by Vizag Steel was concluded at around USD 300-305/MT, FoB Indian East Coast.
Chinese billet export offers remain range-bound
Chinese billet export offers remain range-bound owing to limited trade activities. Offers for Q235 (150*150 mm) billet are being heard in the range of USD 310-315/MT, FoB Chinese main port.
Global billet prices as on week 30 ( 18 Jul – 24 Jul’16)
| Particular | Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M | Remarks |
| China Export | FOB China | 150*150 | USD | 310-315 | -10 | +18.33 | Prices remain range-bound on low trade activities. Also, political tension in Turkey has hurt the market sentiments. |
| India Export | FOB Vizag | 150*150 | USD | 300-305 | -5 | 0 | Recent tender by Vizag Steel fetched bids at around USD 300-305/MT, FoB Vizag. |
| CIS Export | FOB Black Sea | 125*125 | USD | 315-320 | 0 | +1.67 | Prices up on limited offers from Chinese suppliers. |
| South East Asia Import | CFR SE Asia | 150*150 | USD | 320-325 | NA | NA | Prices remain range-bound. |
| Bangladesh Import | CFR Chittagong | 150*150 | USD | 315-320 | -10 | +5 | Indian billet (150*150 mm) is being offered at around USD 320/MT, CFR Chittagong. |
| Middle East Import | CFR Dubai | 150*150 | USD | 320-325 | -10 | +3.33 | Prices sustain on limited supply from China. |
| Turkey Import | CFR Turkey | 125*125 | USD | 330-335 | 0 | +5 | Trade activities remain limited due to ongoing political tensions. |
| India Domestic | Ex-Mumbai | 100*100 | INR | 21,700 | +400 | -1,000 | – |
| China Domestic | Ex-Tanshang | 150*150 | RMB | 2,020 | -80 | -190 | Prices down despite low inventories and production cut. |
Source: SteelMint Research
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