SteelMint learned in conversation with market sources that, on an average the overall steel industry in Nepal is running at 30-50% capacity utilisation to ease out finished steel inventories and to cope up with liquidity crisis.
The major mills in eastern India being reported, weak demand from Nepal due to fund crisis and mentioned that presently credit limit days increased to two folds than the late of calendar year 2018.
It should be noted that due to weak demand, the export offers of Indian large & mid sized mills more or less on same range currently and evaluated at USD 485-490/MT for Billet & USD 560-565/MT for Wire rod, CNF Raxaul border, Nepal.
As per major Indian mills, the buying inquiries remained weak even though the prices are competitive. However they stated that as the Nepal’s re-rollers have lowered their purchases, they are routinely buying small quantities from the mid sized mills.
It also observed that, Vizag Steel (RINL) – one of the major exporter of Billet & Wire rod to Nepal has failed to frequent deals with Nepal. In Mar’19, the company has floated total of 16,254 MT Billet (equivalent to 6 rakes) & 5,418 MT Bloom export tenders to Nepal, in which only about 8,127 MT Billet export tender has been settled at the highest bid of USD 440-445/MT ex-mill.
It seems that Nepal’s Billet & Wire rod imports from India may come down in coming months as bulk bookings are limited in current circumstances.
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