Vizag Steel (Rashtriya Ispat Nigam Ltd ), a state-owned enterprise, may cancel its 30,000 MT billet (150*150 mm) export tender on account of higher price expectation.
The company had floated a tender of 30,000 MT billet for ASEAN, Africa and Middle East countries, which was expired on 27 Apr’16.
Six companies participated in the tender; Lion Impex being the highest bidder at around USD 378/MT FoB Vizag, which was later increased to USD 385-390/MT. However, the company’s expectation was around USD 400-410/MT, FoB.
There is no official confirmation from the company but looks that tender may be cancelled, said a source close to this tender.
Global billet export offers fall sharply
Market participants also believe that falling billet prices in global market is the prime reason for cancellation. Buyer does not want to take position when Chinese billet offers have corrected over USD 50/MT in last one week.
“Nobody wants to take position in highly volatile market. Billet offers from China have corrected sharply and CIS countries will follow suit shortly. Vizag Steel’s expectation was too high”, said one of the participants.
Current offers for billet Q235 are hovering within USD 320-330/MT, FoB China Main Port and USD 390/MT, FoB Black Sea.
Vizag Steel’s last tender was concluded at USD 363/MT, FoB Vizag Port by Duferco for Bangladesh market.
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