Indian state-run steel producer Rashtriya Ispat Nigam Limited (RINL) has floated an export tender for 30,000 mt of prime grade 150 mm billet, company sources said.
The tender export sale is against 100 percent advance payment and February 10 is the deadline for submission of bids. Shipment will be completed by the end of March, the sources said.
The previous tender for billet exports was closed at $624/mt FOB, according to market sources, but this time RINL is targeting a much higher level of $660/mt FOB. With the freight assessed from India to China at $35/mt and to Southeast Asia at $40/mt for 30,000 mt, this price translates to $695-700/mt CFR. Though market sources believe that it is too high for most Asian customers at the moment, the strong return of China and the expected further price increase in the region may support the bullish views of Indian mills. “I believe that $650/mt FOB is quite possible,” a trader said.
Another Indian producer SAIL has also opened a tender, for around 19,000 mt of billets.
The SteelOrbis reference price for ex-India billet remains at last week’s level of $630-660/mt FOB until the new deal is closed.
