The Nepal government has extended the nationwide lockdown till 27th Apr 2020 as a part of measures to stem the spread of the corona virus in the country. This is the 3rd extension of lockdown in Nepal.
In a Cabinet meeting, chaired by Prime Minister KP Sharma Oli, it was decided to extend it further as new COVID-19 cases rose in Nepal.
Land locked country – Nepal has about 35-40 steel mills which have mostly rolling capacities totaling about 1.5-2.0 MnT pa, for which the nation sourcing raw materials (Sponge iron, Billet & Wire rod) from India only.
SteelMint in conversation with Nepal based steel mills learned that few of them have put up a request to government to allow resumption of operations, however none of them have received it yet.
Sources reported that Nepal’s borders being closed till 3rd May, this has hampered logistics leading to rise inventories at railway sidings.
It seems with closed industries in Nepal, India’s steel exports will negatively impact in coming months.
Recent released customs data shows that Nepal’s billet imports from India dropped to 3 months low with 97,866 MT in Mar’20, also it drop slightly by 4.7% M-o-M.
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