Latest export offers for induction grade billets to Nepal, which is the sole buyer of the product from India, have surged once again due to rising Indian domestic steel prices.
As per trade participants, small lots of billet have been sold yesterday (26th Apr) at close to USD 540-542/MT ex-mill, Durgapur. Further, today’s offer for the same Induction grade billets, size – 100*100mm have been reported at around USD 545-548/MT (ex-mill) by Durgapur based manufacturers. Out of total Steel imports to Nepal, about 90-95% is from India and majorly from East region – Durgapur, Odisha & Jharkhand.
However, the commercial grade Wire rod export offers have remained firm at USD 615-620/MT against SteelMint’s last week assessment at around USD 620/MT; ex-mill, Durgapur. On CIF Nepal basis, these offers would translate high by about USD 20-25/MT.
Further, the large mills Wire rod export offers (Grade SAE1008, 5.5-6.0mm) to Nepal assessed at close to USD 690-695/MT CIF Jogbani, Nepal (Indo-Nepal border). As per sources based in Nepal, in mid of Apr 2018 couple of prime grade steel manufacturers in Nepal have booked Wire rod with Jindal Steel at USD 690/MT CIF Nepal for which dispatch is in pipeline. The deal is for about 2 rakes, one each for two producers in Nepal.
Nepal Steel trades remain good on Spurt Prices
The local steel demand in Nepal remained active, as per mill owners based in Biratanagar & Birgunj in Nepal. About 60-70% of the Country’s mills are based in Birgunj & Biratnagar hence known as major industrial hub of Nepal.
As per participants, trades are supported for Rebars on offer prices at NPR (Nepalese Rupee) 78,000/MT (INR 48,750/MT or USD 730/MT) by small mills and NPR 80,000/MT (INR 50,000/MT or USD 749) through large mills – Prime brands. The prices are ex-works, size 10-20mm and excluding VAT at 13%.
In conversation with sources, it was also observed that most of the mills in Nepal are running out of stock due to the shortage of billets. Most mills have low inventories of billet due to an acute shortage of railway rakes from India to Nepal as the government has prioritized the import of fertilizer rather than steel just before sowing season begins.
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