After hefty bookings of wire rods from Indonesia, Nepal mills have also booked billets from the country.
Current offers of Indonesian BF-route billets reported at around $530-535/t CFR Haldia, equivalent to $580/t CPT Nepal, lower by around $20/t from previous deals.
If sources are to be believed, the previous bookings were made at nearly $555-560/t CFR Haldia, equivalent to $600-605/t CPT Nepal, the shipment of which is scheduled for the first week of October 2022.
Meanwhile, fresh offers for Indonesian BF-route wire rods are reported at around $610-615/t, equivalent to $655-660/t CPT Nepal.
Demand for Indian billets weaken
Demand for Indian billets remained weak even at lower offers due to attractive offers from Indonesia. No fresh deals from India have been reported this week at offers of $630-635/t CPT Nepal for BF route billets.
Nepal govt to revise steel import duties
Sources close to the development have reported that the government is planning to cut duties on billets and wire rods imports.
The proposed reduction in wire rods import duties is 5% against 10% earlier while the excise duty for wire rods is expected to be rolled-over at NPR 4,500/t.
For billet imports, the excise duty may be reduced to NPR 2,500/t against INR 3,500/t earlier, while the import duty on billets is expected to be unchanged at 5%.
Sponge iron
As per suppliers, sponge iron buying was quite dull this week as buyers had made active bookings in the last couple of weeks. Hence, there was no fresh deal. As per SteelMint’s weekly assessment, offers fell by $10/t, w-o-w, to around $445-450/t LTW eastern India, equivalent to $470/t CPT Nepal (FeM 80%, lumps 70%, fines 30%).
Domestic rebar offers in Nepal stable
Domestic rebar offers in Nepal, on the other hand, continued to be stable for the second straight week on account of modest demand and volatile prices in the Indian market.
Current offers for 12mm rebars are at around NPR 91,000/t ($714/t) on an ex-works basis, excluding VAT.
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