Mid scale mills that produce steel through induction furnace route have reduced their steel export offers on account of falling domestic prices along with lower demand in exports.
The current export offers of induction grade billet (100*100mm) are reported at around USD 410/MT ex-mill at Durgapur, equivalent to USD 435/MT CPT Nepal.
The export offers to Nepal have declined by USD 5/MT, followed by drop in Indian domestic billet price by INR 300-500/MT (USD 3-7), on a weekly basis.
As per trade sources, about 4,000-5,000 MT billet export deals were concluded in the last couple of days to Nepal via road route. However, demand via rake route is still weak.
Inline with this, demand of wire rod has also decreased as most of the buyers in Nepal have booked volume in advance during Dec’19 & Jan’20 with the large scale mills.
The current prices of wire rod offered by mid scale mills are assessed at around USD 465/MT ex-mill, Durgapur, equivalent to USD 490/MT CPT Nepal.
Meanwhile, the last deals in Dec’19 & Jan’20 for 6-7 rakes wire rod of large scale mills were heard at around USD 520-530/MT & for billet at around USD 450-455/MT; CPT Nepal, Raxaul/Jogbani border.
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