Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel had issued a tender for export of 15,000 MT billets (90*90mm), 20,000 MT bloom (150*150mm), 16,000 MT wire rod coil followed by other steel products. The tender expired on 09 Aug’17.
SteelMint reported last week that company billet (90*90 mm, IS 2830 C20 MMN GR A) has been concluded at USD 480-485/MT, FoB India. The concluded price is higher by around USD 35/MT against company’s last tender last billet export tender for 90*90 mm floated in Jul’17 which was concluded at around USD 448/MT, FoB India.
In the latest update received the company has also concluded the tender for 20,000 MT bloom (150*150 mm, IS 2830 C20 MMN GR A) at around USD 480/MT, FoB India.
Global Billet Market Overview – Week 34
Billet export offers have remained on higher side. China has been strongly emphasizing on capacity cuts of induction furnace steel in order to rule out substandard production in order to reduce pollution. This resulted in reduced supplies of Billet from China.
In the latest update received Hebei- largest steel producing province in China is expected to complete capacity cuts decided ahead of schedule. It has removed 10.5 MnT crude steel capacity over Jan-July.
Other factors like hike in global scrap prices, hike in prices of electrodes over less supply and increased demand from Electric Arc Furnace operators have also resulted in surge in billet prices.
However less trade activities were reported this week as buyers preferred to wait & watch for further price movements.
|
Particulars |
Reference Prices |
Remarks |
| FoB India | 480-490 | Recent tenders have heard to be concluded at USD 480-485/MT, FoB |
| CFR South East Asia from China | 540-555 | Chinese offers remained at USD 550-555/MT, CFR South East Asian countries. However buyers continue to look for levels of USD 520-540/MT, CFR levels. |
| Northern China ex-works | 3,770** | Domestic billet prices in China have corrected marginally this week. |
| FoB Turkey | 510-520 | Scrap prices moved up slightly by USD 5-6/MT W-o-W, resulting in increase in billet export offers. |
| Ex-works Iran | 22,000* | Owing to hot weather, mills have cut production or have put plant on maintenance. |
In USD/MT
*in Rial /kg
**in Yuan/MT
Source: SteelMint Research
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