RINL receives Bid lower by USD 30/MT for Bloom Tender

RINL experiences discouraging response for Billet & Bloom export tender; has received USD 20-30/MT lesser bids than previous deal.

RINL (Vizag Steel) had floated an export tender of 75,000 MT Bloom and 10,000 MT Billet on 20 Dec, 2014 with bids session on 9 Jan, 2015. Three trading companies namely Duferco, Nucor & Fecat participated in the event. Among the three, Duferco (Swiss based trading company) was the highest bidder for Billet and Blooms at USD 415/MT and 390/MT respectively, FoB East Coast of India. Company settled its last export deal of Billet and Bloom at around USD 436/MT (5,000 MT) and USD 419/MT (10,000 MT) respectively, FoB Vizag.

Sources mentioned that company is yet to finalize the deal for Bloom at USD 390/MT and is currently negotiating for a win-win deal.

On the other hand, the company had simply canceled the Billet export deal, witnessing low bids. RINL expected bids at around USD 430/MT for Billet, but receiving the bids of USD 415/MT made it non-workable deal for them. Now, the company is in plan to release the material in domestic market, which may be a concern for Indian Billet manufacturers.

*Prices in INR/MT
Source: SteelMint Research