Vizag Steel also known as RINL- the state-owned steel maker under the Ministry of Steel, had invited a tender for export of 10,836 MT Wire rods and 2,709 MT Billets to Nepal on 1st Sep’18. The minimum offered quantity for both products was 2,709 MT (1 rake).
The delivery for the material was scheduled till 15 Oct’18 and bid due date was 5th Sept’18, which will remain valid till 12th Sep’18.
As per participants report to SteelMint, Vizag Steel received good response on this tender as bid prices were quite high than the company’s last export tender to Nepal.
The highest bid for the company’s Billet (90*90 and 75*75mm IS 2830) export tender by the sources reported at around USD 503-505/MT, Ex-Mill.
Further the highest bid for Wire rod (5.5-8mm SAE 1008) tender mentioned about USD 593-595/MT, Ex-Mill. However as per company officials the tenders have yet not been concluded and are still under discussions.
The freight cost from Vizag Steel to CFR Raxaul/Jogbani border (Nepal) is about USD 30-35/MT for Wire rod & USD 40-45/MT for Billets, as reported by mills in Nepal.
If participants are to be believed, Vizag Steel to conclude this tender as bid prices similar to other large mills offers for Billet & Wire rod.
The large mills based in Jharkhand have offered blast furnace grade Billet is about USD 540-550/MT & Wire rod close to USD 620-630/MT CFR Raxaual/Jogbani border (Nepal).
Induction grade offers
The medium mills based in Durgapur, East India reported limited demand from Nepal buyers at current offers for exports.
The latest quote for Billet produced through EA or Induction furnaces are reported at around USD 518-520/MT & commercial grade Wire rod at around USD 590-595/MT Ex-Mill.
The domestic steel prices in India are expected to remain strong as domestic demand is better and also due to short supply & rising prices of raw materials i.e. Iron ore & pellets.
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