SAIL's Billet Export Tender Drifts Indian Billet Export Prices to 30 Months High

Indian state owned mill's recent billet tender fetches higher bids which drifted Indian billet exports prices to 30 months high.

Steel authority of India (SAIL) had floated an export tender of 15,000 MT billet of size 125mm and grade 4SP/5SP for Sept'17 end shipment. Company received extra ordinary response, as 10-11 companies participated in the tender. According to participants company received highest bid of USD 440/MT FOB Haldia (India east coast) Market participants are of the view that the company is negotiating and it is expected that they might conclude it around USD 445/MT, FoB. SteelMint tried to contact company officials but calls remained unanswered.

It is to be noted that bidders generally bid USD 5 lower, if cargo is loaded from Haldia due to low draft. As port cannot handle big size vessels, which in turn cost high vessel freight.

Some participants believe that,SAIL got this response because of quality of billet being offered. According to participants, this quality is widely accepted in Asian region.

However, some participants believe that, this price does not indicate the real market as prices are moving up merely due to shortage of billets in global market.

SAIL floats another export tender

SAIL (IISCO Steel Plant) floats another open tender of 15,000 MT billets of size 150*150mm for Sept'17 end shipment. Participants have to make their bids by  today.

Active billet export tenders

1. SAIL 15,000 MT tender of size 150*150mm
2. Vizag Steel 10,000 MT tender of size 90*90mm with due date of 26 Jul'17. The shipment delivery is scheduled in Aug'17