India’s state owned steelmaker, Vizag steel (also known as RINL), has received a poor response to its 5,500 MT (equivalent to 2 rakes) wire rod export tender for Nepal. This tender was floated on 07th June and expired on 12th June with a price validity till 19th June 2018.
“Company managed to receive bids from three participants, highest bid reported at USD 615/MT, followed by USD 605/MT and USD 595/MT on ex-mill at Vizag basis. Tender likely to get cancelled on higher price expectation, which is above USD 640/MT.” said a source based in Nepal.
Nepalese buyers had already booked around 12,000-13,000 MT of wire rod in last 2 months and low seasonal demand keeps buying interest low, he further added.
Last tender by Vizag steel, which expired on 1st June for 5,504 MT wire rod was cancelled on low participation.
Prices in Indian domestic market for wire rod are hovering at INR 41,000/MT (USD 612) by mid sized mills and INR 43,500-44,000/MT (USD 650-657) by large mills, excluding GST of 18%.
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