Vizag Steel also known as RINL (Rashtriya Ispat Nigam Limited)- the state-owned steel maker under the Ministry of Steel, had invited tender for export of Wire rods, Billets and Blooms to Nepal. The quantity for each product was at 5,418 MT and the minimum offered quantity for each products was at 2,709 MT.
The due date for bid submission was 13th Dec’18 with scheduled delivery by mid of Jan’19. The offer given by the bidder will remain valid till 20 Dec’18.
As per participants, company’s Billet (90-90mm) export tender received highest bid (H1) at around USD 448-450/MT and Wire rod at close to USD 550/MT. However the tender has yet not been finalized and is under negotiation mode, they added.
As per them, the company is willing to conclude tenders at higher price and had expectations of bids higher by about USD 15-20/MT than the highest bids received. However few trade sources mentioned that company might cancel the wire rod tender as participants denied to increase bids than he submitted highest one at around USD 550/MT (ex-mill).
Prior to this, Vizag Steel, had invited a tender for export of 8,127 MT Billet & 5,418 MT Bloom (150*150mm), which bid due date was on 15th Nov’18. As per sources, the company concluded tender for 90*90mm Billet at around USD 480/MT for 2,709 MT (equivalent to 1 rake) & 150*150mm Bloom at close to USD 455-460/MT for 5,418 MT (2 rakes), ex-mill.
Mid Size mills observed dull response
The mid size mills based in eastern India, Durgapur & Odisha being reported limited purchase through the re-rollers in Nepal owing to weak demand & sufficient stock with them.
The current offers through the Durgapur based mills reported for Induction grade Billet (100*100mm) at around USD 425-430/MT & Wire rod at close to USD 520/MT (ex-mill), which are equivalent to USD 450-455/MT & USD 545/MT CFR Raxaul border, Nepal, respectively.
Nepal’s Import Slump on Poor Demand
Nepal, the major buyer of Indian Billet & Wire rod registered sharp fall in its monthly imports in Billet by 10% & Wire rod by 62% in Nov’18. The imports have been slump due to poor off take in finished steel products & sufficient stock of Billet with the Nepal mills.
The country has imported about 93,441 MT Billets in Nov’18, fall by 9.89% as compared to 103,700 MT in Oct’18.
Further the Wire rod imports being sharply fall by 62.2% M-o-M and recorded at 11,495 MT in Nov’18 which was about 30,443 MT in Oct’18.
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