India's Vizag Steel Concludes Billet Export Tender to Nepal - Sources

Vizag Steel also known as RINL (Rashtriya Ispat Nigam Limited)- the state-owned steel maker under the Ministry of Steel, had invited tender for export of 8,127 MT (equivalent to 3 rakes) Billet & 2,709 MT (one rake) Wire rods to Nepal on 31st Jan'19.

The bid due date was on 5th Feb and offer validity was till 12th Feb. The delivery for the material is scheduled by 15 Mar’19.

As per sources, the company has concluded Billet (90*90 mm) export tender to Nepal at around USD 435-440/MT (ex-mill).

Market sources also reported to SteelMint that company has cancelled the Wire rod tender owing to low bids than expectations. According to them highest bid was around USD 510-520/MT as against company's expectations of more than at USD 540/MT on ex-mill basis.

Mid-size mills export offers surge following hike in domestic prices

Amidst surge in Indian domestic steel prices, export offers to Nepal have increased sharply through the mid size mills who's making steel through EA or Induction furnace route.

The latest export offers through the Durgapur, eastern India based mills reported for Induction grade Billet (100*100mm) at around USD 470/MT as against beginning of last week at USD 440-445/MT ex-mill.

Meanwhile the fresh export offers for Wire rod (commercial grade & 5.5mm) is hovering at USD 545-550/MT as against same day last week at USD 515-520/MT, ex-mill at Durgapur.

SteelMint analysed that deals in small parcels are taking place as most of steel plants in Nepal are currently operating in lower capacities. In addition another reason was cited that buyers are assuming that surged prices will be notified for near term and their procurement will resume after amending the market direction.

source: SteelMint