India: RINL’s Billet Export Bid surprises Market

RINL, for its recent export tender of 90,000 MT Billet & Bloom received bids higher by USD 10-15/MT. The tender expired on 18 Mar’15.

The Indian market was astonished with the response of global participants on export bids. The bids received in the tender were USD 10-15/MT higher than those in the previous one. The company on 26 Feb’15 offered a total of 90,000 MT material (80,000 MT Bloom & 10,000 MT Billet) in the global tender.

As per sources, “Duferco Asia Pte Ltd was the highest bidder, sealing the tender at USD 370/MT for Bloom and USD 405/MT for Billet, FoB Vizag.”  However, there is no official confirmation from the company.

RINL, for its last tender, had received bids at around USD 390/MT for Billet, which it asked the bidders for revision and later denied to award.

Duferco had managed to book the complete lot of Bloom i.e. 80,000 MT and half of the Billets i.e. 5,000 MT offered in the tender. The shipment is expected to take place in Apr’15 for Bangladesh/ Sri Lanka.

Indian participants were quite enthusiastic about the export tender since Bangladesh already had cheaper Billet/Bloom offers from China & Russia and yet it purchased Indian Billets at a premium rate. The offers from China & Russia were as low as USD 375-395/MT, CFR Bangladesh. This denial to China & Russia was may be due to the longer transit time and economical uncertainties going on in Russia.

Indian Billet Market Scenario

Billet prices across the country surged by INR 300-600/MT last week,  but trade volumes remained low . Rise in number of Billet offers from South Africa still remains a concern for Indian manufacturers. Billet offers from South Africa are assessed at USD 385/MT, CIF India (in containers).

Indian Billet Prices as on 23 Mar’15

Prices in INR/MT
*Payment next day
Source: SteelMint Research