The local mills in Nepal have reported surge in billet imports prices by Indian suppliers about USD 5-10/MT. The export prices are increasing in line with Indian domestic steel prices which continue to surge amid strong demand, the local billet prices up by around INR 500-1,000/MT (USD 7.5-15), W-o-W.
Nepal is the major buyer of Indian Induction route billets due to rising rolling capacities, billet imports in the nation have surged to 7-month’s high in Apr’18(15th Mar to 14th Apr) and stood at 102,529 MT. Presently the rolling mills in Nepal are producing finished steel at close to 1.5 MnT per annum which is expected to cross 2 MnT by end of current year.
SteelMint’s current week price assessment for Indian Induction grade billet exports to Nepal stood at USD 535-540/MT ex-mill Durgapur against last week assessment at around USD 530/MT. Similarly. offers from Odisha, Rourkela rose to USD 525/MT as against small trades a week ago at USD 520-522/MT ex-mill.
In context to Wire rod, Nepal’s Wire rod imports from India is also healthier as there the mills did not have major wire rod making facility. The current export prices of commercial grade Wire rod (5.5-6.0mm) by Durgapur based medium mills assessed at USD 600/MT and little deals being reported at close to USD 597-598/MT.
Although as per purchase sources in Nepal, currently the large producers are not looking for fresh export offers due to better margins in domestic market and limited stock.
He also added that, Vizag Steel (RINL) is running out of stock, hence there is less chances for fresh wire rod tender. Another big supplier of Wire rod to Nepal – Jindal Steel has not quoted any fresh offers due to nil availability of material.
Nepal’s local steel demand stagnant
Presently, the local steel demand in Nepal is average as per producers. Thus, the mill owner’s are not in hurry for major billet bookings and are dealing if necessity.
The small mills Birgunj, Nepal reported firm Rebar prices at NPR 78,000-79,000/MT (USD 717-726/MT or INR 48,750-49,400/MT). The prices are ex-works, size 10-20mm and excluding VAT at 13%.
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