Domestic rebar prices in Nepal dropped by NPR 2,000/tonne (t) ($17/t), w-o-w. However, the mills remained active on procuring billets, largely eyeing the induction furnace (IF) route which offered more feasible prices compared to the BF-route material.
As sources in Kathmandu had predicted last week, local steel prices in Nepal are less likely to rise further. Rebar prices have come down in fresh deals reported.
As per the sources, rebar demand turned bearish on higher offers. Hence, to boost sales, the plants adjusted their offers. Fresh offers for 10-16 mm rebars from mid-sized plants are reported at around NPR 81,000-82,000/t ($682-691/t). Those from the major mills producing premium brands are at around NPR 84,000/t ($708/t). Prices are on an ex-works basis, excluding VAT and ED.
Demand for Indian IF billets remains active
As the mid-sized IF-route mills from India offered attractive billet offers, demand remained active. Fresh deals have been reported at around $580-583/t exw-Durgapur, equivalent to $605-610/t CPT Nepal. The prices are mostly firm on a weekly basis.
No fresh deals have been reported for BF-route billets (produced through the primary mills) and the fresh offers are hovering at $625/t exw (loaded to rake), equivalent to $645/t CPT Nepal.
Meanwhile, the latest offers for wire rods increased by $20/t through the primary mills and fresh quotes were reported at around $700/t exw (loaded to rake), equivalent to $720/t CPT Nepal. Offers through the mid-sized mills (IF route) were reported at $625/t exw, equivalent to $650-655/t CPT Nepal.
Outlook
Sources expect steel prices in Nepal as well in India to remain volatile due to fluctuating demand as well as subdued trends in the global market. So, prices may not change sharply in the short term.
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