Vizag Steel, for its recent export tender of 110,000 MT of Billet & Bloom, held on 28 Apr’15, receives bids in line with global offers.
Vizag Steel (RINL) issued an export tender of 100,000 MT Bloom (size 150x150mm) & 10,000 MT Billet (size 65×65, 75×75 and 90x90mm) on 8 Apr’15, which closed on 28 Apr’15.
As per sources, two companies participated for 20,000 MT Bloom each, bidding at USD 365/MT & USD 370/ MT, FoB Vizag (East Coast of India). However, Vizag Steel has not concluded the deal and has continued negotiations. The consignment is most likely to be shipped to Bangladesh or Sri Lanka.
In Vizag Steel’s last export tender, Duferco Asia Pte Ltd came out to be the highest bidder, sealing it at USD 370/MT for Bloom and USD 405/MT for Billet, on FoB Vizag basis. Out of 80,000 MT Bloom and 10,000 MT Billet put for sale in last tender, Vizag Steel managed to sell all of Bloom and half a lot (5,000 MT) of Billet. Bloom was shipped to Bangladesh and Billet was shipped to Sri Lanka.
Global Billet Offers
Billet offers in CIS region observed some improvement amid rising global Iron ore & Scrap prices. Square sized billet was assessed at USD 370-372/MT FoB Black Sea, whereas Chinese offers remain the same at around USD 340-350/MT FoB China main port for bulk shipments.
Whereas offers to Bangladesh, one of the largest buyers of imported billet in South Asian region remained on a higher side. High speculations that Bangladesh government may raise import duty on Billet in upcoming budget (in June) has resulted in sudden increase in demand in the country. As such, the offers from China & Russia to Bangladesh were assessed at USD 405 & 415/MT respectively, CFR Chittagong Port.
Meanwhile, India to Bangladesh has become the second most preferred choice for Billet, owing to better import feasibility and offers comparable to Russia, at USD 410-415/MT CFR Bangladesh.
Indian Billet Market Scenario
Indian domestic Billet prices hit a 4 year low. Increased supply in domestic market and sluggish global demand had led to the current situation. Current prices for 125×125 mm Billet are in the range of INR 25,500-29,750/MT, ex-works, India.
Billet Prices as on 1 May’15
| Indian Billet Prices in INR/MT | ||||
| Markets | Size in mm |
Prices | W-o-W | M-o-M |
| Mandi Gobindgarh | 125X125 | 29,750 | -550 | -1,150 |
| Rourkela | 125X125 | 25,600 | -300 | -700 |
| Durgapur | 125X125 | 26,300 | -500 | -1,500 |
| Raipur | 125X125 | 26,100 | -300 | -1,100 |
| Mumbai | 125X125 | 28,600 | 0 | -700 |
| Chennai | 125X125 | 27,800 | -200 | -200 |
| Global Billet Prices in USD/MT | ||||
| FOB India | 150X150 | 370 | 0 | 0 |
| FOB Black Sea | 125X125 | 370 | 0 | + 15 |
| CNF Dubai | 125X125 | 385 | 0 | + 5 |
| CNF Turkey | 125X125 | 390 | 0 | + 15 |
| CNF Bangladesh | 130X130 | 405-415 | 0 | + 20 |
Source: SteelMint Reseach
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