An acute shortage of railway rakes for transport of billet from India to Nepal continues to push Long steel-Rebar prices in the country’s domestic market northward. As per SteelMint’s weekly assessment, prices rose by NPR 1,000-2,000/MT (USD 10-19) in the current week, while prices had increased by NPR 2,000/MT (USD 19) in the previous week as well.
While speaking to SteelMint, a re-roller based in Nepal disclosed that the government has prioritized the import of fertilizer just before sowing season begins. As a result, hardly 30% of the available rakes are being allotted for billet transport as opposed to around 70% allotted earlier. According to the re-roller, he had booked billet from India about USD 500/MT (Ex-Durgapur) few weeks back but is unable to transport the material.
According to market observers, demand usually remains low during the ongoing harvest season and therefore the sudden surge in prices of finished steel products is more a consequence of supply disruption than normal demand dynamics.
Another key factor is believed to be spurt in Indian steel export offers which gained significantly in last couple of weeks by about USD 20-25/MT for Billets, Wire rod & Sponge Iron.
Presently, the prices for commercial grade – Rebars in Nepal is hovering at NPR (Nepalese Rupee) 77,000-78,000/MT (INR 48,100-48,800/MT or USD 734-744/MT) by small mills and through the large mills – Prime brands is at offered at close to NPR 80,000/MT (INR 50,000/MT or USD 763). The prices are ex-works, size 10-20mm and excluding VAT at 13%.
As per the Nepal re-rollers, Induction grade billet export offers by steel mills in Durgapur have increased to USD 540-543/MT against last week at USD 532-537/MT. Supplier sources based in Kolkata, East India have confirmed a small billet (100*100mm) export deal to Nepal at USD 540/MT (ex-mill), yesterday.
Further, the Wire rod (5.5mm) export offers for commercial grade by Durgapur based manufacturers reported at USD 620-625/MT which was last week evaluated at USD 615/MT (ex-mill).
Sponge iron export offers by Odisha & Jharkhand (East India) based manufacturers is being raised by USD 15-20/MT and is currently assessed at USD 335-340/MT ex-works, FeM 80 lumps grade & loaded to wagon.
Indian steel prices remain on high
Indian domestic steel prices remained on higher side with slight price fluctuations in current week. Most of the mills have advance orders in hand and are not in position to cut prices. Moreover the surge in construction activity is likely to further strengthen demand.
The latest offers in Durgapur, East India quoted for Billet is INR 35,500-35,700/MT (USD 541-544), Wire rod (5.5mm) at INR 40,300-40,500/MT (USD 614-617) & Sponge lumps (FeM 78-79) at INR 22,100-22,300/MT (USD 337-340); ex-mill & excluding 18% GST.
Presently, the stockiest in the Indian market, kept themselves away from fresh bookings with an anticipation of price correction in the domestic market due to gradual decline in inquiries and all time high offers.
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