India is the major supplier of steel to Nepal and with the fall in Indian domestic steel prices, the export offers for Nepal also come down by USD 5-10/MT, according to SteelMint weekly price assessment.
Nepal has rolling capacities of more than 2.0 MnT per annum for which the Nation imports billet from India in huge quantity. Currently the West Bengal- Durgapur based steel mills are offering induction grade billet (120*120mm) exports to Nepal at around USD 495/MT which was last week at USD 495-500/MT ex-mill. Recent, a Odisha, Rourkela based manufacturer booked a rake of Billet (100*100mm) for Nepal at around USD 485/MT ex-mill.
On FoB basis, the Indian billet export offers for 120*12 mm are hovering at USD 510-515/MT FoB India. Meanwhile, Chinese offers for 150*150, Q235 billet are evaluated at USD 530-535/MT FoB China.
Wire rod export prices to Nepal by Durgapur based medium mills also dropped by USD 10/MT and the latest offers are reported at USD 570/MT ex-mill against last week’s deals which were concluded at USD 578-580/MT for 5.5mm. The large producers’ offers for Wire rod are noted to be at USD 750/MT, CIF Nepal for high carbon (Grade – SAE 1008).
Coming to flat steel – HRC & CRC offers, according to an official of government owned top steel producer in India stated that “there is no fresh export deal for Nepal due to none availability of material, rake issue and earlier pending bookings. The prime focus is to complete previous bookings which made during Dec 2017 at around USD 580-600/MT (ex-mill) for HRC,” he added.
Vizag Steel Billet Export Tender
Vizag Steel also known as (RINL), had floated an export tender on 2nd Feb’18 for 11,008 MT bloom and 5,504 MT billets to Nepal. The delivery period for the material scheduled by Feb-end and the offers given by bidders are valid till 13 Feb’18.
According to a Nepal based big producer Vizag Steel has received highest bid for the tender at around USD 500/MT (ex-mill). However, the company officials couldn’t confirm the same.
Domestic Rebar Prices fall in Nepal
The medium mills in Biratnagar, Nepal who produce about 5,000 MT finished steel a month reported a fall in local rebar prices by Nepalese Rupee (NPR) 1,000/MT (INR 650/MT or USD 10), week on week. The prices fall in line with weakening domestic demand and price corrections in India.
According to SteelMint price assessment the medium mills in Biratnagar are offering rebars 10-20mm at NPR 69,000/MT (INR 42,800/MT or USD 668). Meanwhile, few of the major mills’ (prime brands) offers for same size in Birgunj are reported at around NPR 73,000-74,000/MT (INR 45,300-45,900/MT or USD 705-716). The prices mentioned are ex-works & excluding VAT @13%.
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