Despite slump in Indian billet prices, the domestic steel prices in Nepal still remain stable, according to SteelMint’s weekly price assessment. Ideally steel prices in Nepal are affected significantly by Indian billet price movements owing to import dependency.
A re-roller based in Biratnagar, Nepal said, “There is no price change since couple of weeks even though the steel prices in India are declining. The local demand is supported currently as this is the peak season for construction activities. Thus, the prices firm amid strong inquiries from the infrastructure segment”.
“Meanwhile, it is possible that if billet prices in India fall further, domestic steel prices in Nepal may gradually decline”, he added.
The commercial grade domestic rebar offers are reported at around NPR 70,000-71,000/MT (INR 43,700-44,400/MT or USD 686-696/MT) ex-Birgunj (Nepal), size 10-20mm and excluding VAT @ 13%. The prices are similar to SteelMint’s last week price assessment.
A Kolkata, East India based exporter reported, latest billet export deals to Nepal at close to USD 495/MT on ex-mill, Durgapur basis. While, similar offers being reported by Odisha, Rourkela based producers for Nepalese buyers at USD 495-497/MT ex-mill. However, there is no buying interest for Rourkela billets due to high cost of freight as compared to Durgapur.
Indian Billet Prices Slump
Indian domestic billet prices continue to decline over slowdown in domestic demand.
SteelMint’s price assessment reported drop in Indian domestic billet offers up to INR 1,500/MT (USD 23) in a week and the fresh offers are evaluated at INR 31,600-31,800/MT (USD 495-499) ex-Durgapur and INR 31,000-31,200/MT (USD 486-489) ex-Rourkela, excluding 18% GST.
The Industry participants in India are assuming that, local billet prices have little scope for rebounce in the short term. According to them price may either find stability or gradually come down further due to prevailing poor global trends.
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