Vizag Steel, a state owned steel mill and India’s largest billet exporter, has concluded 40,000 MT export deal through tender, according to sources. The company had floated an export tender of 30,000 MT (150*150 mm) and 20,000 MT (100*100 mm) sized billet, which closed on 11 Apr’16.
Sources confirmed that deal for 40,000 MT (30,000 MT bloom and 10,000 MT billet) material has concluded at around USD 362-363/MT, FoB Vizag Port (Indian East Coast). Cargo is likely to be shipped to Bangladesh in May. Vessel freight from India to Bangladesh is assessed at USD 15/MT.
Three companies participated in the tender namely Duferco, Tata International and Nucor. Duferco was the highest bidder, followed by Tata International and Nucor.
Vizag Steel fetches USD 100/MT from previous tender
Vizag Steel has fetched USD 100/MT more from the previous tender, which was closed in Dec’15 for 80,000 MT. Last tender fetched price of USD 262/MT, FoB Vizag Port.
Higher export offers from China
Chinese billet export offers continue to rise owing to increasing prices in domestic market. Current offers for Chinese billet Q235 grade of size 150*150 mm are assessed at USD 400-410/MT, CFR Bangladesh.
Current MS billet offers in global and domestic market
| Delivery | Grade (mm) | Currency | Price | W-o-W | M-o-M |
| FOB China | 150*150 | USD | 385-395 | 60 | 85 |
| FOB Vizag | 150*150 | USD | 360-365 | 25 | 37 |
| FOB Black Sea | 125*125 | USD | 385-395 | 47 | 70 |
| CFR SE Asia | 150*150 | USD | 395-400 | 20 | – |
| CFR Chittagong | 150*150 | USD | 390-410 | 48 | 55 |
| CFR Dubai | 150*150 | USD | 395-400 | 52 | 60 |
| CFR Turkey | 125*125 | USD | 400-405 | 45 | 70 |
| Ex-Mumbai | 100*100 | INR | 24,200 | -200 | 200 |
| Ex-Tanshang | 150*150 | RMB | 2,640 | 360 | 700 |
Offers in Currency/MT
Source: SteelMint Research
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