Rebar prices dropped further in Nepal market by NPR 1,000/tonne ($9/t), week-on-week, following improved capacity utilisation at steel mills by 10% to 40-50% overall as well as weak seasonal demand amidst the prevailing lockdown in the Himalayan Kingdom, which is extended till 14 Jun’21.
Fresh offers for rebar floated by mid-sized plants are reported at NPR 87,000/t ($744/t). Offers are at NPR 91,000/t ($778/t) from the major mills that are premium brands. The prices are for material of 10-16 mm in size and on ex-works basis, excluding VAT and ED.
Demand for steel remains weak due to the ongoing lockdown and the onset of wet weather in the country. Thus, the mills expect TMT prices to remain under pressure, as finished steel offtake is typically poor during monsoon.
IF grade billet import offers slide
As per SteelMint assessment, induction furnace (IF) grade billet import offers to Nepal have dropped by $5-10/t, w-o-w. Prices are currently hovering at $590-595/t, exw-eastern India, equivalent to $620/t, CPT Nepal, via road delivery.
Meanwhile, a leading Indian mill is reported to have concluded a deal for two rakes (5,500 t) of blast furnace (BF) grade billet at around $640-645/t, CPT Nepal. Demand for BF grade billet remains strong due to attractive offers compared with IF grade material and a total of five to seven rakes of BF grade material has been sold to Nepal in the last couple of weeks.
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