As per SteelMint’s latest assessment, the long steel – Rebar prices in Nepal moved up again by NPR 2,000/MT (USD 19). The reason behind the price rise is higher Indian steel prices which has made billet imports costlier for Nepal’s rolling mills. Out of total steel imports in Nepal, India’s contribution is about 90-95%, as per data maintained by SteelMint stats.
The current commercial grade Rebar offers by small mills in Birgunj, Nepal reported at NPR 80,000/MT (USD 747/MT or INR 49,800) against last week assessment at NPR 78,000/MT (USD 728/MT or INR 48,600/MT). The prices are ex-works, size 10-20mm and excluding VAT at 13%.
As commented by one of the Nepal’s producers “with the rise in Indian billet export prices our input cost has moved higher, thus there was need to hike finished steel prices even though the local demand is constantly firm.”
As per SteelMint assessment, the latest export offers for Indian Induction grade billet (100*100mm) stood at around USD 555/MT, in the previous week it was hovering at USD 540-545/MT ex-mill, Durgapur. Further, the Odisha, Rourkela based manufacturers also raised billet export offers to Nepal by USD 10/MT (W-o-W) and latest quote is heard at USD 540-545/MT ex-plant.
The mills in Nepal also stated that the Indian large mills were holding back fresh Wire rod export offers due to shortage of material, also they are planning to raise price for May’18 deliveries. Meanwhile, the last purchase in Mid of Apr’18 for Wire rod 5.5mm (Grade SAE1008) by Jindal Steel reported at around USD 690/MT CIF Nepal (Jogbani border). The major suppliers of Wire rod to Nepal from Indian large producers are stated – Vizag Steel(RINL), Jindal Steel & SAIL (Steel Authority of India).
Similarly. medium mills in Durgapur, East India has reported good booking for domestic. Meanwhile, the latest export offers for Nepal quoted at USD 640-642/MT which is higher by USD 20/MT against SteelMint’s last week report at USD 620/MT ex-mill, 5.5mm & commercial grade.
The Nepalese producers stated that, anticipations are higher for further rise in domestic steel prices as Indian suppliers are not willing to take healthy bookings looking at upsurge in prices in near term due to shortage of Semis material in domestic market amid strong demand.
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