Indian state-run steel company Rashtriya Ispat Nigam Limited (RINL) has completed an export tender for 30,000 mt of 4SP billet, receiving a highest bid of $356/mt FOB, a company source said on Wednesday, April 1.
Though the company declined to divulge details regarding the buyers, trade circles said that the highest bid was submitted by a trading firm for the Chinese market for end-of-April delivery. The FOB level corresponds to slightly above $370/mt CFR China, sources said.
The RINL deal price level was on the higher side compared to deals concluded by other Indian steel mills during the past week in the range of $351-353/mt FOB, also for end-of-April delivery.
RINL sources said that the tender received a good response, with the strong bids largely based on the ability of the exporter to ensure timely loading, shipment and delivery dates through Vishakhapatnam port in southern India, which has been comparatively less impacted by the national lockdown and also being in close proximity to RINL’s steel mill located in the port town, entailing minimal transportation and logistical challenges.
The higher bid was also attributed to the exportable lot being mild steel forging grade material, which tends to get a slightly higher valuation, the sources added.