Recent export tender of 20,000 MT billet and bloom by one of India’s largest and state owned steel producer received lower bids.
Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel has issued a tender for export of 10,000 MT billets (95*95mm) and 10,000 MT bloom (150*150mm) for April delivery.
According to market sources, company has received bids at around USD 390-400/MT FOB levels for both billets and blooms. Company has not finalized the tender and still under negotiations. But sources believe that tender will be concluded.
This received bids are low due to the falling billet prices in global market, which has corrected by USD 20-25/MT in last one month.
Current offers for square billet from CIS region are hovering at USD 390-395/MT FOB Black sea, which was at around USD 410-415/MT FOB few weeks back.
Market is also apprehensive about falling domestic billet prices in China, which may prompt Chinese suppliers to explore seaborne market. There is no firm export offer from China, but prices are expected to be in the range of USD 430-440/MT FOB China.
Vizag Steel to Increase Domestic Steel Prices
Vizag steel is likely to increase domestic steel prices for April owing to increased exports and improvement domestic demand. The Company is one of the major players in long steel, which produces around 3.6 MnT steel per annum.
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