Indian export tender of 30,000 MT blooms (150*150 mm) by Vizag Steel, which is scheduled on 11 Apr’16, is expected to fetch higher bids. Steelmint learnt that rising Chinese billet export offers coupled with higher scrap prices will increase interest for upcoming Indian tender.
Bangladesh re-rollers will prefer Indian billet
Bangladesh re-rollers prefer Indian billets/bloom due to lesser sailing time and duty advantage over other countries. It is to be noted that Indian billet/bloom do not attract any duty, whereas imports from other countries have to pay a flat duty of USD 90/MT.
With rumors that Bangladeshi government may increase import duty on billet in upcoming (in June) union budget, re-rollers are looking for prompt delivery and will not mind paying a premium for that.
On one hand, where Chinese offers are in the range of USD 340-350/MT, CFR Bangladesh (equivalent to USD 320-330/Mt FOB China), people are anticipating that Indian tender should fetch atleast USD 360-370/MT, FoB India (equivalent to USD 375-385/MT CFR Bangladesh).
Last tender by Vizag Steel was concluded at USD 262-263/MT, FoB in the month of January 2016, for which cargo was shipped in March.
Vizag Steel raised domestic prices by INR 10,00/MT (USD 15)
Vizag Steel has raised domestic bloom prices by INR 1,000/MT (USD 15) for April deliveries owing to better demand and rising prices in domestic market post MIP (Minimum Import Price). Current offers for 150*150 mm are assessed at around INR 23,700-23,800/MT (USD 359-360)on ex-plant basis.
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