Rolling mills in Nepal are under pressure on account of modest finished steel demand in the domestic market. However, mills kept prices stable due to the volatility in Indian steel prices.
As per SteelMint’s assessment, domestic rebar (12mm) prices in Nepal are hovering at around NPR 85,000/t ($651) exw, excluding VAT, stable w-o-w.
The mills are less operational due to subuded demand and sufficient steel stocks with them. However, they are hoping that demand will pick up soon.
Demand for Indian billets rises
SteelMint learned that, a few deals for Indian IF-route billets were concluded recently to Nepal. With the removal of export duties, Indian mills have also started floating export offers for wire rods. However, fresh deals are yet to take place.
IF-route billets offers stand at around $510-515/t, while mid-sized mills’ wire rod offers hover at 550-555/t, both are on exw-Durgapur (eastern India) basis. The freight costs to Nepal stand at $20-25/t.
BF-route billets offers are floated at $545-550/t and offers for wire rods (SAE 1008) stand at $610-620/t LTW-eastern India. The freight costs to Nepal are at $15-18/t.
Sponge iron demand active
Demand for Indian sponge iron remains active in Nepal. Recently, about 4,000 t of deals were concluded at a price range of $385-390/t LTW eastern India, equivalent to $400-405/t CPT Nepal.
Sponge iron demand is likely to remain strong in the coming days as recently one of the Nepalese mills has started making billets with a daily capacity of 500-600 t, SteelMint notes.
Outlook
Domestic steel demand in Nepal is expected to improve in the short-term as the ongoing season is favourable for construction activities and the elections in the country are also over.
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