Domestic rebar prices in Nepal stayed firm w-o-w, although buying improved at the prevailing lowered offers. However, during this period, billet import offers rose by $15-20/t amidst a slight rise in Indian domestic steel prices on account of curbs in furnaces’ production levels.
Due to the lower rebar prices, buyers have resumed purchases since they were holding back for a few weeks. However, it seems demand will remain lower than average due to seasonal factors. Construction works remains disrupted, a few sources based in Kathmandu said.
Fresh rebar offers of 10-16 mm floated by mid-sized plants are reported at NPR 75,000-76,000/t ($629-637/t), while those from the major mills producing premium brands are at around NPR 77,000-78,000/t ($645-654/t). Prices are on an ex-works basis, excluding VAT and ED.
Inquiries for Indian billets weak
Despite a slight improvement in Nepal’s domestic steel demand, demand for Indian billets from the local mills remained weak due to sufficient stocks alongside expectations that Indian steel prices may remain under pressure.
As a result, no fresh deals via rake delivery have been heard. However, a few deals had been reported earlier this week (via road delivery) at price levels of $535-540/t as against prevailing offers of $550-555/t exw-Durgapur, equivalent to $575-580/t CPT Nepal, (IF-grade billets of 100mm).
Finished steel
As per suppliers based in Durgapur, in eastern India, a deal for a rake (2,500 t) of wire rods (IF grade, size 5.5 mm) is under negotiation at around $620/t CPT Nepal.
Steel imports increase 49% y-o-y in H1 CY’21
Steel imports into Nepal were recorded at 1.20 million tonnes (mn t) during the first half of CY’21 (Jan-Jun’21) according to customs data maintained with SteelMint. Import volumes increased by 49% y-o-y as compared to 809,194 t in the corresponding period last year (CPLY). Out of the total imports, 692,002 t were semi-finished steel, 339,517 t were finished flats and 172,040 t were finished longs.
Imports in Jan’21 were the highest at 257,027 t but which dropped for the next four months in a row due to demand weakness amidst resurgence in Covid-19 cases and stringent lockdown measures from late-Apr’21 in this Himlayan kingdom. However, steel imports picked up in Jun’21 with easing of lockdown restrictions and resumption of market activities. Total imports in Jun’21 stood at 205,024 t, a m-o-m increase of 29% compared to 158,809 t in May’21.
On a yearly basis, imports rose by 63% in Jun’21 as against 125,845 t seen in the corresponding month last year.
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