The local Steel prices in Nepal rallied on strong demand and with the surge in Indian billet prices. As per the trade participants, this week prices increase by Nepalese Rupee (NPR) 2,000/MT (INR 1,300, USD 20).
SteelMint’s price assessment for commercial grade Rebar in current week stood at NPR 68,000-69,000/MT (INR 42600-43000, USD 665-675) which was at around NPR 66,000-67,000/MT (INR 41200-41900, USD 640-650) during last week. The prices are ex-Birgunj (Nepal), size 10-20mm & excluding VAT @ 13%.
The Induction grade billet manufacturers in Durgapur- East India also confirmed that fresh deals to Nepal with increase in prices at USD 20/MT (NPR 2050, INR 1300). And the latest trades are reported at USD 490-495/MT ex-mill which took place last week at close to USD 470/MT.
It should be noted that, Indian steel prices moved up between INR 1,500-2,000/MT (USD 23-30) on strong demand and short supply of raw materials. Thus, this price hike have directly affected the Nepal’s domestic steel prices as they do not have sufficient billet making capacity and purchases the total of required steel from India as there is less transportation – cost & time and easy payment terms.
However, as the Indian steel prices started to fall, it can be inferred that Nepal’s domestic prices will also come down, if local demands are not supportive.
Reference price of Indian Semis & Long products
| Particular/delivery | Prices | W-o-W | M-o-M |
| Billet, Ex-Durgapur | 31,500-31,700 | + 1,700 | +,2,900 |
| Billet, Ex-Rourkela | 31,400-31,600 | + 2,500 | + 4,400 |
| Rebar (12mm), ex-Durgapur | 35,100-35,300 | + 2,700 | + 4,000 |
| Structure (Channel 150*75), Ex-Durgapur | 35,500-36,000 | + 1,300 | + 3,100 |
| Wire rod (5.5 mm), Ex-Durgapur | 37,200-37,500 | + 4,000 | + 5,200 |
Basic prices in INR/MT
Source: SteelMint Research
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