- Cash rebar prices fell NPR 1,500/t to NPR 85,000/t amid monsoon-driven demand weakness.
- Weaker raw materials pressured prices, while power disruptions increased production costs.
Nepal’s domestic rebar prices declined by NPR 1,500/tonne week-on-week (w-o-w) to NPR 85,000/t in the week ended 10 October 2026, amid subdued market activity during the ongoing monsoon season and ahead of upcoming festivals. Meanwhile, bank-guarantee (BG) prices remained stable at NPR 87,000-89,000/t.
Market participants attributed the decline primarily to softer raw material prices and cautious buying amid seasonal demand weakness. Construction activity typically slows during the monsoon, while the upcoming festive period is expected to further disrupt trading and material procurement. Buyers are therefore focusing on need-based purchases rather than bulk bookings.
Raw material prices soften
Raw material prices in the regional market weakened during the week, adding further downward pressure on Nepal’s rebar market.
Sponge iron prices declined by $1/t week-on-week to $348/t CPT Raxaul, while billet prices fell by $6/t to around $488/t CNF Raxaul. Meanwhile, IF-EAF wire rod prices decreased by $15/t to approximately $560/t CNF Raxaul.
The decline in sponge iron and billet prices has reduced input cost pressure for steel producers, contributing to the correction in finished steel prices. However, the extent of cost relief remains influenced by domestic operating expenses and production conditions.
Power disruptions raise operating costs
Despite weaker raw material prices, intermittent power supply remains a significant challenge for Nepalese steel producers. Power disruptions have affected production, forcing mills to reduce output while increasing dependence on alternative power arrangements and raising operating expenses (OPEX).
Consequently, lower input costs have not necessarily translated into improved margins, as higher operating costs and production constraints continue to weigh on mill economics.
Outlook: Prices remain under pressure
Nepal’s rebar market is likely to remain subdued in the near term as monsoon-related construction weakness and festive holidays weigh on buying activity. Softer regional billet and sponge iron prices could continue to limit price recovery, while power-related production constraints and elevated operating expenses may provide some support to mill offers.
Market direction will depend on the pace of construction activity recovery, changes in regional raw material prices and the extent to which power supply disruptions affect domestic steel production.
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