Steel Authority of India Limited (SAIL), India’s largest steel producer in terms of production, has recently floated an export tender of 40,000 MT slabs (stock lot). Tender is going to expire on 7 Dec’15, according to market participants.
The company is actively pushing its semi finished products through export tenders owing to increase in inventory levels.
SAIL in its recent investors call mentioned that semis inventory increased by 0.7 MnT during Q2 FY16 to 1.6 MnT. Inventory is mainly at Bokaro/Rourkela plants, which the company will utilized largely through conversion and balance through sale.
Participants hesitant
Sources mention that tender is likely to receive weak response due to declining prices in global market.
“Stock lots slabs should not be more than USD 200-210/MT CFR. However, SAIL’s expectation is higher than that. Prime slabs are available in the range of USD 240-250/MT, CFR”, said a senior executive of a global trading house.
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