It is learned that Vizag steel have cancelled the recent pig iron and billet export tender which closed on 19th Jan’17.
Company floated these export tenders of 20,000 MT Pig iron and 20,000 MT bloom(150 X 150 mm). It had awarded both the tender, but tender awardees failed to submit the bank guarantee (BG) on time. Also, they are likely to re-issue both the tenders; according to sources.
Pig iron tender was awarded at USD 298/MT FoB Vizag Port and billet was awarded at USD 397.5/MT, FOB India.
Market participants believe that sudden drop in global scrap and billet prices has led bidders to back out from this tender. Most likely both the cargos were supposed to go to Bangladesh.
It is to be noted that another billet export etnder by SAIL for exports of 15,000 MT billets on 03 Feb’17 fails to received bids according to sources.
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