Domestic rebar prices in Nepal fell by NPR 2,000-3,000/tonne ($17-25/t), w-o-w, due to weak demand along with softening Indian steel prices. Following a drop in steel prices, fresh bookings of induction furnace (IF)-route billets remain limited, SteelMint notes.
Inquiries from the domestic market, in general, drop during the festive season. As a result of this sentiment, re-rollers have cut prices to entice buyers and liquidate rising stock levels, sources based in Kathmandu stated.
Fresh offers for the 10-20-mm rebar from the mid-sized plants are at around NPR 90,000/tonne (t) ($756/t), while those from the major mills producing premium brands are at around NPR 92,000/t ($773/t). Prices are on an ex-works basis and excluding VAT.
Indian IF-billets prices fall
As per SteelMint’s assessment, fresh export offers for Indian IF-route billets to Nepal have been floated at around $645-650/t, which were hovering at $660/t CPT Nepal last week.
Demand for IF-route billets is negligible currently compared to the BF route, of which about 5-6 rakes were sold last week at around $665-670/t, CPT Nepal and the offers remain unchanged currently.
Meanwhile, wire rod export offers floated by mid-sized mills were reported at around $670-675/t exw, equivalent to $695-700/t CPT Nepal.
Sponge iron trade remains active
SteelMint confirmed one mini rake of sponge iron (FeM 81-82%, lumps 100%) export deals this week to Nepal at around $492/t, loaded from Odisha, equivalent to $515/t CPT Nepal.
Since the government has slashed the import duties on sponge iron to nil, demand for the material continues to remain active, even surging by around 54% m-o-m to 33,800 t in Oct’21, considering Nepal’s fiscal year.
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