Domestic rebar prices in Nepal rose further by NPR 2,000/tonne (t) ($17/t), while the mills actively booked billets and wire rods from India.
Local finished steel demand in Nepal was heard to be quite good at lower price levels. Thus, prices continue to remain supported. However, a further rise seems to be less likely as higher prices dented local demand amidst fluctuating Indian steel prices.
Current rebar offers for 10-16 mm from mid-sized plants are reported at around NPR 83,000-84,000/t ($700-708/t), while those from the major mills producing premium brands are at around NPR 86,000-87,000/t ($725-733/t). Prices are on an ex-works basis, excluding VAT and ED.
Mills book BF-route steel
In confirmed deals, a total of three rakes of steel (BF route) were sold by an eastern India-based primary mill, of which two rakes of billet deals were reported at around $625/t, while one rake of wire rods was sold at nearly $680/t exw-India, loaded on rake. On CPT Nepal basis, these prices would be high by $20/t.
Also, it is learned that mid-sized mills’ (IF-route) billet demand from Nepal’s re-rollers was strong and sufficient deals have been reported at an average price of around $585/t exw-Durgapur, equivalent to $610-615/t, CPT Nepal.
Meanwhile, current offers have been floated at $580/t exw-Durgapur, equivalent to $605-610/t CPT Nepal. Prices moved up slightly by up to $5/t, w-o-w.
Outlook
There are presumptions that Indian steel prices will not rise rapidly due to softening global billet and scrap prices along with a slight uptick in Covid cases. Hence, this may keep transactions limited in both India and Nepal.
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