On 18 June’16, Steel Authority of India Limited (SAIL) has floated a global tender for the export of prime mild steel hot rolled plates of 5,000-10,000 MT quantity.
The material will be of ASTM A36 grade or equivalent, shipbuilding quality with size ranging between 10-63 mm. Export duty as applicable in sellers country shall be borne by the seller and other duties payable shall be borne by the buyer. Bids for the same will open on 23 June’16 at 16:00 hrs.
Prices should be quoted on FoB, Vizag basis. Also, on the closure of deal with the concerned party, the shipping of the material will commence from 31 Aug’16. Prices are to be quoted per MT basis for all the markets other than Nepal, Canada, and Taiwan.
Last export tender remained unawarded
On 1 June’16, the company floated last export tender for 5,000-10,000 MT prime mild steel hot rolled plates with scheduled technical to close on 07 June’16.
As per market sources, the last export tender remained unawarded as the bids received were lower than expected. Bids received were at USD 380/MT, FoB Vizag Port, and the expected price bid by the company was around USD 400/MT, FoB Vizag.
The company had managed to receive participation from three parties for its export tender.
However, previous export tender for 10,000 MT prime hot rolled plates which closed in the month of May’16 failed to receive response as the tender had not received the expected price quotation from the interested parties.
HR Plate market scenario
Currently, Indian plates prices of commercial grade (base size 16-20 mm) are being assessed at INR 30,500-31,000/MT (ex-works basis). Indian steel sector is facing severe demand crunch currently, resulting which demand outlook for plates is also quite pessimistic. Chinese plates export offers are heard to be in the range of USD 335-340/MT FoB China and USD 440-450/MT FoB Black Sea.
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