An Indian mill had floated a bloom export tender for 30,000 MT quantity and 150*150mm size. The grade mentioned in the tender was 3SP/4SP and the shipment was scheduled by end-Jun’20. According to credible sources report to SteelMint, the tender witnessed a dull response.
If sources are to be believed, the dull response was primarily due to the payment terms of the tender, which was noted to be 100% advance, and as per sources, the set base price was USD 375/MT, FoB basis.
Also, the futures in China were noted to witness a reasonable drop. This has created an enormous disparity in the bids and offers, especially for Indian billets. For instance, the Indian billet offers were noted to be between USD 395-400/MT, CFR, while the bids are lower than USD 385-388/MT, CFR levels.
Observing the event, the CIS nations have marginally pull down their billet export offers for China, and are currently at USD 385/MT, CFR. However, even then, the Chinese buyers are resisting to the CIS current offer levels and are bidding at USD 380-382/MT, CFR.
However, prior to this, the Indian mill managed to book 60,000 MT billets to China though tender, and the deal value was noted to be between USD 375-380/MT, FoB India.
Leave a Reply