The current sluggish demand may weigh on domestic rebar prices in Nepal. However, prices will be more dependent on raw material costs, ie, billet import offers from India.
The mills have kept rebar prices stable despite poor demand as input costs remain at manageable levels. Sources said that, as the billet offers from India are almost stable; they are keeping finished steel prices firm. Meanwhile, with poor off take, rebars stock piled up with the plants.
Fresh offers for 10-16 mm rebars from mid-sized plants are reported at around NPR 81,000-82,000/t ($681-689/t). Those from the major mills producing premium brands are at around NPR 83,000-84,000/t ($698-706/t). Prices are on an ex-works basis, excluding VAT and ED.
IF-route billets demand remains active
To re-stock material, the mills actively booked IF-route billets from India. SteelMint confirmed around 5,000 t of deals this week at an average price of around $575-585/t exw-eastern India (Durgapur and Odisha), equivalent to $605-610/t CPT Nepal.
On the other hand, deals for commercial grade wire rods (IF route) were assessed at $620-625/t exw, equivalent to $650/t CPT Nepal.
Inquiries low for BF-route steel
The demand for BF route steel remains weak. The buyers claim that they are more comfortable with IF-route prices than the floated offers of BF-route mills, which are currently hovering at $620/t exw-India, equivalent to $640/t CPT Nepal, for billets.
Offers for wire rods stand at nearly $700/t exw-India, which is equivalent to $720/t CPT Nepal.
Rising steel capacities may soon pull down billets demand
SteelMint confirmed that recently two plants in Nepal have started trial productions of billets in their new furnaces. The daily production capacity of each plant in the newly installed furnaces is about 400 tonnes and around 500 tonnes, respectively.
With the rising melting capacities in Nepal, sponge iron demand will soon get a boost which will directly benefit the eastern region-based plants located in Jharkhand and Odisha.
Nepal’s billet imports from India were recorded at 776,750 t, while sponge iron imports stood at 127,750 t during Jan- Jul’21.
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