Indian Induction grade Billet export offers to Nepal rose significantly following hike in Indian domestic prices, however as per suppliers buyers are in wait & watch, looking this is not for long-term and prices soon to weak.
The prevailing Billet(100*100 mm) export offers by mid sized mills in Durgapur, eastern India reported at USD 450-455/MT ex-mill, this is equivalent to USD 480/MT CFR Raxaul border, Nepal. The prices moved up by USD 10/MT in current week following surge in Indian domestic prices by INR 700-1,000/MT (USD 10-14) in same duration.
As per sources, the rolling mills in Nepal are holding back fresh bookings on revised prices and the last deals reported at near to USD 440/MT ex-mill, equivalent to USD 470/MT CFR Raxaul border, Nepal.
Similarly the large mills reported, no fresh deals for billet and offers for 120*120mm size blast furnace grade Billet reported at near to USD 455-460/MT ex-mill and freight cost to Nepal at USD 15-20/MT CFR Raxaul border.
The local steel demand in Nepal is better currently as the May-Jun’19 duration is the most favorable for construction activities. Also as soon to financial year will be close, the due projects has to be completed, as mentioned by mill owners in Bhairva, Nepal. Meanwhile local rebar prices by mid & large mills stated firm in Nepal at around NPR 67,000-68,000/MT (INR 41,800-42,450/MT or USD 600-609/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.
In line wire rod, the Indian export offers are more or less on same range of mid sized & large scale mills at around USD 550-560/MT* CFR Raxaul border, Nepal. Recent, in last week an official from a large scale mill in eastern Indi reported deals of about 8,000-10,000 MT Wire rod at the same price range which deliveries are due for May-end or in Jun’19.
Correction*
Statistics
On an average Nepal’s monthly Billet imports from India is near to one lakh metric tonnes, which has narrowed down since Feb’19 and recorded at 84,906 MT in Feb’19 & about 71,523 MT in Mar’19.
However, the country’s wire rod imports from India grew significantly during Mar’19 and recorded at 31,125 MT as against 19,299 MT in Feb’19 & 20,813 MT in Jan’19.
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