Steel mills in Nepal producing rebars, structural steel and some flat steel products have resumed operations, local sources reported to SteelMint.
As per them, about 10% steel plants have resumed operations with less than 50% capacity utilization after agreeing to certain conditions by the Govt.
Notably, on 2nd Apr’20, Mr. Yubaraj Khatiwada, Spokesperson and Minister of Finance in a media conference announced that industries manufacturing essential or non-essential products including foodstuff items can start operating but with limited workers (only nearby) and maintaining health standards.
Big infrastructure projects, such as Upper Tamakoshi and Melamchi, can also resume operations by only employing residential workers, not allowing others from outside, he added.
As per the sources, local steel mills in Nepal have also resumed operations to meet the current steel demand. As per them, the period between Mar to mid-Jun is quite favorable for any construction activities, in which finished steel sales in on boom.
— Local rebar prices in Nepal are reported to be firm at around NPR 62,000/MT (INR 38,850/MT or USD 509/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.
— Recent purchase by Nepal mills for large scale mills wire rod (SAE 1008) is reported at near to USD 430-440/MT CPT Nepal (Raxul/Jogbani border), via rake delivery. Further, offers for blast furnace grade Billets is reported at USD 370-380/MT CPT Nepal, however it was not confirmed from suppliers end.
Nepal has about 35-40 medium & small sized plants that produce rebars, structures, flat steel products and pipes. The annual finished steel production by them is about 1.5-2.0 MnT.
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