With rising rolling capacities & steel demand in Nepal, the nation’s imports from India also increase sharply for Sponge iron by 124 % & Billet by 5% Y-o-Y in 2017.
As per the customs data, Nepal has imported about 148,177 MT sponge iron & 1,081,980 MT billet from India in calender 2017 (Jan-Dec mid) as compared to 66,150 MT sponge iron & 1,036,024 MT billet imports in 2016 (Jan-Dec mid).
However, on analysing overall imports in Nepal for billet which includes China exports also recorded at 1,081,980 MT in CY17 against in 2016 at 1,109,791 MT, down by 2.50% Y-o-Y.
Nepal is an import dependent market and most of it is being catered by Indian mills due to less voyage time & easy pay mode through LC (letter of credit) and the steel prices are highly influenced by Indian market.
Nepal has about 20-25 rolling mills which produces around 0.8-1.0 million tonnes of finished steel annually.
Latest Trade Updates
— The medium mills in Durgapur are offers for Nepal are prevailing for Billet at USD 495-500/MT, Wire rod at USD 595-600/MT, Sponge iron (lumps 80 FeM) at 340-345/MT on ex-mill basis.
— Recent, Vizag Steel had concluded export tender to Nepal of 8,256 MT Billet & 5,504 MT Wire rod. The billet have been sold out at USD 510-515/MT & Wire rod at around USD 600/MT on ex-mill basis.
— Nepal has imported about 307,881 MT long steel & 495,909 MT Flat steel in CY 17 in which India’s contribution about 91- 94% & China by 5-6%. The imports has down by 12% & 30% Y-o-Y in Flat & Long steel against 562,625 MT & 437,106 MT in CY16.
Leave a Reply