About 15,000 tonnes (equivalent to six rakes) of Indian blast furnace (BF)-route billet deals got concuded for Nepal amidst price competitiveness from the induction furnace (IF) route, sources informed.
The average deal price for the BF-route billets was around $600/t, while the fresh offers have been raised to around $620/t CPT Nepal.
Offers of IF route billets were reported at $585-590/t exw-Durgapur, equivalent to $610-615/t CPT Nepal. These offers increased by $20/t, w-o-w. There are no major bookings from mid-sized plants as the majority of orders were placed with primary mills (BF-route).
Fresh deals of sponge iron reported
Recently, an Odisha, eastern India-based plant confirmed a deal for a rake (2,500 t) of iron-ore based DRI (70% lumps and 30% fines) for FeM 80%, at around $435/t (loaded on to rake), equivalent to $460/t CPT Nepal.
Sponge iron demand is expected to remain strong amidst ramping up of melting capacities in the nation, while billets demand is expected to fall in the same proportion, SteelMint notes.
Wire rod offers up
Offers from mid-scale mills’ wire rods rose further by $15-20/t, w-o-w, and currently stand at $640/t exw-Durgapur, equivalent to $665/t CPT Nepal. A few small deals were reported this week, while bulk buying remains nil amidst rising prices.
No fresh deals were reported for BF-route wire rods, while indicative prices were at around $700/t CPT Nepal.
Nepal’s domestic rebar prices up by NPR 1,000/t ($9/t)
Domestic rebar offers in Nepal increased this week on account of rising cost of imported billets, while demand continues to remain subdued, sources based in Kathmandu informed.
Rebar offers from standalone mid-sized rolling mills for 10-20 mm were reported at around NPR 83,000/tonne ($697/t), while offers of premium brands were at about NPR 86,000/t ($722). Prices are on an ex-works basis and excluding VAT.
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