Recent billet export tenders floated by two Indian state owned units received decent response, SteelMint learned from market participants.
First tender by Vizag Steel for 20,000 MT billets of size 150mm received bids from three participants, highest bid reported above USD 510/MT FOB levels. Second lot of 10,000 MT billets of size 90mm received bids from four companies, highest bid heard to have gone above USD 520/MT FOB India, for July end shipments.
The above bids are valid for one week, which means Vizag Steel has to take a call if tender has to be awarded or not before 02 Jul’18.
There is another tender of 16,512 MT billets of size by Vizag Steel for Nepal expiring today.
Another tender, which was issued by Steel Authority of India (SAIL) for 10,800 MT billets of size 125mm, heard to have received bids at similar levels.
Indian domestic billet prices may find support
Indian domestic billet prices may find support on improved buying interest from global buyers at these levels. Notably Indian billet prices have corrected by INR 1500 -2000/MT (USD 22-29) in last one week few days to INR 34,600-800/MT (USD 505-507) on Ex-Mumbai basis.
Global Billet export market overview
Billet export offers from CIS nations have softened marginally yesterday. Current price assessment is around USD 510-520/MT, FoB Black Sea, against last week’s assessment of USD 515-520/MT, FoB. Amid Ramadan festive holidays, less trades were observed last week.
SE Asian markets have remained quiet in terms of trades and price assessment stood at USD 545-550/MT, CFR.
Iran billet export price assessment has remained stable at USD 505-510/MT, FoB Iran. Trades remained limited owing to concerns over US trade sanctions.
Domestic billet prices in China have declined further by about RMB 90/MT W-o-W to RMB 3,640/MT (including VAT) for 150*150mm Q235 grade.
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