Domestic rebar prices remained firm following lower production levels as well as demand in Nepal. However, rising billet import offers are worrying the steel mills. Thus, it seems, local steel prices have been rising so that mills could pass on the higher input costs to customers.
Currently, in Nepal, a few mills have shut down, while the remaining few are operating at 20-40% capacity.
- Rebar offers from mid-sized plants stayed firm at NPR 88,000/tonne (t) ($753/t) and at NPR 91,000/t ($779/t) from the major mills/premium brands. The prices are exw, excluding VAT, ED & for sizes 10-16 mm.
Demand continues to weaken and is expected to remain so as the monsoon begins from June and stays on till August. Hence, major construction works during this period will halt, resulting in a drastic fall in steel consumption.
In addition, the lockdown in Nepal has again been extended till 14 Jun’21, in a few districts. However, the government has given exemption to construction activities which can carry on during the night hours.
Import offers of IF & BF grade billets rise
- As per SteelMint’s assessment, induction furnace (IF)-grade billet import offers to Nepal have increased by $30-35/t w-o-w. These are currently hovering around $600/t exw-eastern India, equivalent to $625-630/t CPT Nepal, via road delivery.
- Meanwhile, a large Indian mill is reported to have concluded a deal for two rakes (5,500 t) of blast furnace (BF)-grade billets at around $630/t exw, equivalent to $645/t CPT Nepal. However, fresh offers have been raised by $20/t to $650/t exw, equivalent to $665/t CPT Nepal.
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