Bangladesh increased import duty on semi finished products of iron or non-alloy steel. A matter of concern for Indian billet, as Bangladesh is its major buyer.
India’s leading and state owned steelmaker, Vizag Steel reissued an export tender of various steel products for which the company had failed to receive bids in the last tender. The company is offering about 106,000 MT of steel products for export during June ’15. Material will be delivered till 31 Aug’15 FoB Visakhapatnam or Gangavaram ports on direct export basis.
This time the company has introduced some structural items like 6,000 MT angles, 6,000 MT channels as well as 6,000 MT rounds in this export tender.
Material Description
| Material Name |
Size (mm) | Length (meter) |
Grade | Qty (MT) |
Min Quoted |
| Billet | 65×65/75×75/ 90X90 |
12 | IS 2830 Gr. A/ IS 2830Gr. A, C20MMn |
30,000 | 5,000 or multiples of 5,000 |
| Rebar | 16 to 32 | 12 | IS 1786–2008Fe 500 | 6,000 | 2,000 or multiples of 2,000 |
| Wire Rod Coils (WRM 1) |
5.5 to 6.5/ Coil Weight: 1.2 MT |
– | SAE 1008 DQ / IS 7887 | 6,000 | 2,000 or multiples of 2,000 |
| Wire Rod Coils (WRM 2) |
5.5 to 7/ Coil Weight: 2 MT |
– | SAE1008 | 6,000 | 2,000 or multiples of 2,000 |
| Blooms | 150X150 | 12 | IS2830 Gr.A/ IS2830Gr. AC20MMn |
40,000 | 5,000 or multiples of 5,000 |
| Rounds | 16 to 80 | 12 | IS 2062 | 6,000 | 2,000 or multiples of 2,000 |
| Angle | 75X75 / 90X90 / 100X100 / 110X110 |
12 | IS 2062 : E250 A6 | 6,000 | 2,000 or multiples of 2,000 |
| Channel | 100X50 / 125X65 / 150X75 / 200X75 |
12 | IS 2062 : E250A | 6,000 | 2,000 or multiples of 2,000 |
Source: SteelMint Research
Quotations should be given in USD or INR. Deadline for submission of bids will be till 25 June’15 at 15.00 hrs and technical bids will open on the same day at 15.30 hrs.
Last export tender for 135,000 MT billet/bloom fails to receive response
The company closed its last export tender on 25 May’15. The event was unsuccessful as it received only one participant for billet and no participant for bloom.The company had increased the quoted quantity of bloom to 125,000 MT, but it failed to receive bids. Also, it was only able to make a deal for 10,000 MT billet at around USD 395-400/MT.
Bangladesh increased import duty on semi-finished products
Earlier, the reason behind this failure of export tender was anticipated as increase in import duty on billet by USD 25-30/MT by Bangladesh in its then upcoming budget, now announced. On 04 June’15, Bangladesh announced its Budget 2015-16 in which it increased import duty on semi finished products of iron or non-alloy steel. According to the new budget, duty to be imposed on billet is USD 90/MT (i.e. 7,000 Bangladeshi Taka).
RINL unable to fetch bids for past few export tenders
In addition, it should be noted that the export tender closed on 28 Apr’15 for 100,000 MT bloom & 10,000 MT billet received a mixed response. Out of the total, 20,000 MT bloom (150X150 mm) was sold at around USD 371/MT FoB Vizag, shipment moved to Bangladesh. On the other hand, 10,000 MT billet (65X65,75X75,90X90 mm) was sold at around USD 400/MT FoB Vizag. The shipment moved to Sri Lanka. The company reissued the tender in order to sell leftover quantity with scheduled technical bids to open on 25 May’15.
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