Indian government-run steel producer Rashtriya Ispat Nigam Limited has floated three separate export tenders for various grades of billet aggregating 90,000 mt for shipment in late July and mid-August. Some of these tonnages are from the previous auctions that failed to be closed due to low bids, sources said on Monday, July 20.
Bids for the first two tenders for 3SP/4SP/4SP-M and 5SP/5SP-M billet are open until July 20 and July 21, respectively, and the minimum volume for purchase is 10,000 mt. The volume in the auction for 3SP/4SP will be ready for shipment by July 31, signaling that the producer is still facing weak demand locally, and has additional volumes to push in the export market.
Some market sources believe that, with the stabilization of prices in China and most offers from Asia currently at $465/mt FOB, the Indian mill has a greater chance of closing sales for base grade near its previous target of $460/mt FOB.
The third tender for 30,000 mt of SAE 1008/1010/1018 bloom closes on July 22 for a minimum bid volume of 5,000 mt.
Deliveries against all the tenders will be executed against irrevocable without recourse international letter of credit, on payable on sight terms.
