- Billet, sponge iron prices rise, lifting production costs
- Wire rod prices increase, tracking higher Indian rates
Nepal’s cash-market rebar prices increased by around NPR 3,000/t ($20/t) w-o-w to NPR 83,000/t, supported by improved buying activity and firming demand. Meanwhile, bank-guarantee (BG) prices remained stable at NPR 85,000-87,000/t.
Market participants reported better domestic buying interest, indicating a gradual improvement in demand. However, recent flooding has disrupted transportation and logistics, affecting the movement of finished steel as well as raw materials.
On the raw-material side, billet prices increased by around $2/t w-o-w to approximately $480/t CNF Raxaul. Sponge iron and pellet-based DRI prices also rose by around $18/t w-o-w to $322/t, increasing input costs for finished-steel producers and putting pressure on margins despite the rise in rebar prices.
Meanwhile, IF-EAF wire rod prices increased by $20/t w-o-w to around $550/t CNF Raxaul, providing modest cost-side support to downstream steel products.
Market sentiment
Market sentiment has turned positive, supported by improving rebar demand and expectations of stronger construction activity. Once flood-related disruptions ease, government-led construction of shelters and houses in affected areas could provide additional demand for rebar.
Meanwhile, wire rod prices also increased, tracking the sharp rise in Indian steel prices. Higher Indian market prices have provided additional support to Nepal’s finished-long steel market.
Overall, Nepal’s finished-long steel market is showing improving demand and firming prices. However, elevated raw-material costs and ongoing logistics disruptions remain key factors influencing producer margins and market activity.
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