As per market participants in Eastern India, the buying inquiries from Nepalese re-rollers continue to remain average. They added, buyers in Nepal are booking material as per necessity & small lots have been booked on daily basis.
As per update, the current export offers of Billet produced through EA or induction furnaces are evaluated at USD 465/MT ex-Durgapur, East India, equivalent to USD 490-495/MT CFR Raxaul border, Nepal.
Similarly, Wire rod export offers to Nepal being raised to USD 520/MT as against last assessment at around USD 510/MT, ex-mill, Durgapur, East India. On CFR basis the latest price amount at around USD 545-550/MT CFR Raxaul border, Nepal.
The slight rise in export prices attributes to gain in Indian domestic prices. As per assessment, in a week duration domestic Billet prices in East India increase by around INR 500/MT (USD 8).
On an average Nepal’s monthly Billet imports from India is about 80,000-100,000 MT which in the first half of 2018 (Jan-Jun) stood about 526,000 MT, as per custom data maintained by SteelMint.
Large Mills Wire rod Offers
The current Wire rod export offers by a large mill based in Jhakhand heard at USD 630-640/MT CFR Raxaul border Nepal for high carbon & Size – 5.5-6.0 MM. As per a re-roller in Nepal, buying interest is less than by USD 20-30/MT than the offers.
Nepal’s Local Steel Demand Remains Sluggish
Presently, the local steel demand in Nepal not up to the mark as heavy rains disturbed most of major construction works in the country, as reported by local mills based in Birgunj & Bhairva.
The commercial grade rebar prices in Birgunj, Nepal by small mills assessed at around NPR 71,000/MT (USD 647/MT or INR 44,350/MT) and through the large mills (premium brands) evaluated at around NPR 74,000/MT (USD 675/MT or INR 46,200/MT). The prices are ex-works, size 10-20mm and excluding VAT at 13%.
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