Rebar offers in Nepal for both cash guarantee and bank guarantee increased by NPR 2,000/t ($15/t) w-o-w to NPR 80,000-81,000/t ($600-607/t) exw and NPR 82,000-84,000/t ($615-630/t) exw, respectively, as against NPR 78,000/t ($585/t) and NPR 80,000-81,000/t ($600-607/t) exw, a week ago, amid slow demand.
Concerns among market participants are rising as load-shedding and rising steel import prices are resulting in a hike in rebar offers.
Reasons behind price hike –
Load-shedding in Nepal – The decline in electricity production from hydropower projects during the dry season is a common challenge in many countries that rely on hydroelectricity as a major source of power generation. During the dry season, the reduced flow of water in rivers limits the capacity of hydropower plants to generate electricity at their maximum capacity. As a result, countries often experience a decrease in overall electricity supply, leading to bouts of load-shedding, particularly in sectors with high electricity demand such as the industrial sector.
Hike in Indian billet prices- In a significant recent development, India’s induction furnace billet index, monitored by BigMint for the key secondary steel market of Raipur in central India, has drifted up to a 6-month high, as per latest available data. The index is on the ascendant due to a melange of factors, notably momentary supply tightness and sudden swings in raw materials prices. It rose by INR 1,100/t settling at INR 43,200/t exw ($519/t) exw Raipur as on 5 April, the highest point in the last six months, driven by continuous buying support from semi-finished and finished steel segments.
Imported wire prices rise
- BF-route wire rod coil offers rose by $15/t w-o-w to $555-560/t exw compared to $540-545/t last week. Moreover, a deal of 1,350 t was heard at $558/t exw.
- EAF/IF-route wire rod offers increased by $15-20/t reaching $535-545/t against $520-525 /t exw last week, as reported by market participants in Durgapur.