SteelMint learnt from trade participants that Indian producers are receiving robust inquiries from Nepalese buyers for billets and this is due to less stock with the Nepal’s re-rollers amid strong trends in India resulting good demand for exports.
Notably, on an average the Nepal’s billet imports declined from couple of month’s. Nepal’s billet import slumped by 9% to 70,695 MT during last month – 15th Dec’17 to 14th Jan’18 (Nepalese calendar year) compared to previous month imports. The imports had declined due to sharp surge in Indian billet prices in Nov-Dec’17 and this has kept away the buyers.
Recently, around 4-5 rakes Induction grade billets (equivalent to 12,000-15,000 MT) have been booked in Odisha for Nepal exports. There has been deal for couple of rakes which has been concluded at around USD 485/MT in last week & the rest being sold at USD 495-498/MT in current week; ex-mill & for 100*100mm.
In addition, India’s state owned Vizag Steel also concluded its 16,512 MT bloom & billet export tender to Nepal. The bid prices was heard at USD 500-505/MT however later with negotiation the tender was concluded at around USD 510/MT on ex-mill basis. Shipment for the material is scheduled by the end of this month.
Nepal has rolling capacities of more than 2.0 MnT per annum which will cross to 3.0 MnT in the coming years with the government’s plan to boost local finished steel productions.
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