India: VIZAG Steel Concludes Export Tender to Nepal

State-run Vizag Steel also known as Rashtriya Ispat Nigam Ltd (RINL) has concluded its Wire Rod & Billet Export tender to Nepal.

Vizag Steel has invited tender for export of 5,418 MT Wire rods, 13,545 MT Billets and 5,418 MT Blooms to Nepal on 6th Jun'19. As per the schedule, the due date for bid submission was 11th Jun'19 which was valid till 18th Jun'19 and delivery scheduled by 15 July’19.

As per information received by SteelMint, the company has concluded Wire rod (5.5mm) export tender at around USD 515/MT for 5,418 MT (equivalent to 2 rakes) on ex-mill basis.

However for billet only a single lot of 2,709 MT (1 rake) has been concluded to the highest bidder at around USD 435/MT ex-mill, while remaining lots of Billet & Bloom remained unsold due to dull participation.

It seems that, the response was not up to the mark in this RINL export tender due to significant drop in export prices of secondary steel mills (mid sized mills).

The export offers by secondary steel mills in Durgapur plunged by USD 25-30/MT in Jun'19 and currently reported for Induction grade Billet (100*100mm) at around USD 415-420/MT ex-mill, equivalent to USD 445-450/MT CNF Raxaul border, Nepal.

In context to Wire rod, the latest quotation by mid sized mills for commercial grade wire rod assessed at USD 490-495/MT ex-mill, which would be around USD 520-525/MT CNF Raxaul border, Nepal.

The local steel demand in Nepal is on average basis currently due to favorable weather for construction activities, hence mills don't have much stock of finished materials.

Latest offers for rebar by mid sized mills stated firm in Nepal at around NPR 67,000-68,000/MT (INR 41,900-42,550/MT or USD 602-611/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.