Steel imports into Nepal were recorded at 1.20 million tonnes (mn t) during the first half of CY’21 (Jan-Jun’21) according to customs data maintained with SteelMint. Import volumes increased by 49% y-o-y as compared to 809,194 t in the corresponding period last year (CPLY). Out of the total imports, 692,002 t were semi-finished steel, 339,517 t were finished flats and 172,040 t were finished longs.
Imports in Jan’21 were the highest at 257,027 t but which dropped for the next four months in a row due to demand weakness amidst resurgence in Covid-19 cases and stringent lockdown measures from late-Apr’21 in this Himlayan kingdom. However, steel imports picked up in Jun’21 with easing of lockdown restrictions and resumption of market activities. Total imports in Jun’21 stood at 205,024 t, a m-o-m increase of 29% compared to 158,809 t in May’21.
On a yearly basis, imports rose by 63% in Jun’21 as against 125,845 t seen in the corresponding month last year.
India’s exports up 44%
India continued to remain the largest exporter of steel products to Nepal at 1.14 mn t during the period under review. Export volumes increased by 44% y-o-y as compared to 797,258 t in Jan-Jun’20, according to SteelMint data.
Interestingly, China has overtaken Japan to emerge as the second largest steel exporter to Nepal in Jan-Jun’21. China’s total exports during the period stood at 54,590 t, a drastic 316% y-o-y increase as compared to 3,856 t in CPLY.
Outlook
Nepal’s import volumes may see a slight uptick in the near-term as steel demand is expected to improve with easing of lockdown restrictions. However, the onset of monsoon may impact demand for some time, SteelMint notes.
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