Nepal – the largest buyer of Indian Billets & Wire rods are currently shows less interest for fresh bookings, SteelMint learned with suppliers.
Nepal’s demand is weak presently due to closing of Nepalese financial year(15th July), monsoon season & falling Indian domestic steel prices which has made buyers cautious to take positions.
As per SteelMint assessment Indian domestic steel (Billet, Rebar & Wire rod) prices have slumped about INR 600-1,200/MT (USD 9-18) in current week due to seasonal weak demand.
The current export offers of Indian induction grade Billets to Nepal hovering at USD 530-535/MT, down by USD 10/MT against SteelMint’s last assessment at INR 540-545/MT ex-mill, Durgapur, East India.
As per participants small deals have been settled in the last week-end at around USD 535-538/MT, however after that buyers are silent and looking low price levels to fetch bookings.
Further the medium scale wire rod producers also stated no major inquiries from Nepal and the last deals for commercial grade – 5.5mm reported at around USD 610/MT, ex-mill, Durgapur. The latest export offers by the producers mentioned at about USD 605/MT ex-mill.
The trade sources stated that “as the previous dispatches are pending the producers/suppliers are not in hurry, likewise if demands remain poor for some time, selling pressure may ease further.”
Nepal also importing sponge iron from India however in limited quantity as the nation do not have large number of Induction furnaces due to less availability of Power.
As per a manufacturer in Central India, a rake of Sponge P-DRI (FeM 79-80) have been sold during 8-10th June to Nepal at the price of USD 295/MT ex-works & loaded to Wagon.
Meanwhile the current offers for Sponge C-DRI (lumps) FeM 78 from East India, Jharkhand assessed at around USD 310-315/MT ex-works & loaded to Wagon. If trade participants are to be believe deal have been settled at this offer price to a Bhairva, Nepal based mill.
Nepal imported about 49,000 MT Sponge iron from India during Jan to May 2018.
RINL Export Tender
Vizag Steel also known as RINL (Rashtriya Ispat Nigam Limited), state owned steel maker under the ministry of steel, has invited the export tender of 11,008 MT Billets, 5,504 MT Blooms & 5,504 MT Wire rods to Nepal on 20th June.
As per the schedule, the last date of bid submission is 25th Jun & delivery of material will be till 31 Jul’18. The offer given by the bidder will remain valid till 02 Jul’18.
Prior to this, the company has floated twice the Wire rod export tender to Nepal but unable to conclude due to low bids at around USD 615/MT ex-mill. However at the same time Billet export tender of 11,008 (equivalent to 4 rakes) was settled at the bid price of around USD 550/MT ex-mill whose dispatches are underway.
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