The Indian state-owned mill RINL is holding three tenders for export of billets and wire rods. The highest bids reported in these auctions have posted an increase, though there has been no information about the successful closing of the tenders as the mill has been targeting higher levels.
The best bid in the latest auction by RINL for 30,000 mt of 150 mm billet (which is the most popular size) has been heard at $538/mt FOB, as SteelOrbis has learned from the market. Since the tender was issued just yesterday and the latest submitting date is January 20, it is still too early to assess if the material will be finally sold at this level.
The reference price for ex-India 125-150 mm billet has settled this week at $525-540/mt FOB, which signals that bids are continuing to increase gradually. Nevertheless, as SteelOrbis reported earlier, the new mill’s target for 150 mm billet in the export market stands at $560/mt FOB.
Moreover, two other tenders issued by RINL on January 3 for 20,000 mt of 90 mm billets and 20,000 mt of wire rod have witnessed the highest bids at $562-563/mt FOB and $630/mt FOB, respectively. The latest submission date was January 10 with the validity of offers to be confirmed by January 17.
“I guess none of these tenders will be booked,” a trader from Singapore said, taking into account the mills’ higher targets.