Domestic rebar offers in Nepal remained stable w-o-w, following subdued demand and volatile Indian steel prices, the latter being the trend-setter for Nepal’s domestic steel market. Inquiries for imported billets was also low.
Domestic rebar offers in Nepal are currently hovering at NPR 84,000-85,000/tonne (t) ($707-716/t) for 10-20 mm through the standalone mid-sized rolling mills. Meanwhile, the plants which have CCMs (own billet plants) are conducing deals depending on quantity and payment terms, sources informed.
Billets demand slow
The Nepal mills have limited billet import bookings this week amidst price volatility in the Indian market and subdued demand for finished steel products in Nepal.
Meanwhile, a few small parcels of induction furnace (IF)-route billets were reported at around $565-570/t exw-Durgapur, equivalent to $590-595/t CPT Nepal, via road delivery. No bulk deals were reported so far this week. These offers fell by $15-20/t, w-o-w.
However, no fresh bookings of blast furnace (BF)-route billets were reported despite fall in offers by $15-20/t to $615-620/t exw-India, equivalent to $635/t CPT Nepal. Earlier, in the last week of Oct’21, about 5-6 rakes of deals were confirmed at around $665-670/t, CPT Nepal.
Offers for mid-scale mills’ wire rods stand at $620-625/t exw-Durgapur, equivalent to $645-650/t CPT Nepal. Offers for BF route wire rods were reported at around $690-695/t CPT Nepal.
Sponge iron demand remains strong
SteelMint confirmed two rakes of sponge iron export deals this week to Nepal. However, prices dropped in fresh deals by $15-20/t and the deals were reported at around $425-430/t, loaded on to rake – India, equivalent to $450-455/t CPT Nepal.
Since the government has slashed the import duties on sponge iron to nil, demand for the material continues to remain active.
Outlook
Sources are expecting Nepal steel prices to remain volatile in the near term. However, if demand improves price may head north.
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