- Prices rise despite muted construction demand
- Higher sponge iron, billet prices lift production costs
Nepal’s rebar prices increased by NPR 3,000/t ($19/t) w-o-w to NPR 86,000/t($562/t) amid subdued construction activity. The price rise was primarily driven by higher raw-material costs and relatively tight availability, despite limited buying interest in the domestic market
Nepal’s bank-guarantee (BG) rebar prices were assessed at around NPR 88,000-90,000/t, remaining firm amid limited availability from domestic producers.
The latest price increase was primarily driven by higher raw material costs and tighter supply, which have strengthened mills’ cost positions and reduced scope for price negotiations despite relatively muted downstream demand.
On the raw material front, sponge iron prices increased by $4/t w-o-w to around $348/t CPT Raxaul, adding to production costs for Nepalese rebar manufacturers.
Meanwhile, billet prices rose by $6/t w-o-w to around $484/t CNF Raxaul, further supporting the upward movement in finished steel prices.
In the wire rod segment, IF-EAF wire rod prices increased by $20/t w-o-w to around $570/t CNF Raxaul, reflecting firmer regional steel prices and higher replacement costs.
Outlook
Despite subdued demand, Nepal’s steel market sentiment remains firm to positive, supported by higher input costs, rising semi-finished steel prices and tight supply. Further price increases will, however, depend on the extent to which higher costs are absorbed by buyers amid relatively weak construction activity.
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