Local steel (rebar) prices in Nepal remain firm in the light of marginal fluctuations in Indian steel prices, according to SteelMint weekly price assessment.
The Nepalese producers have reported offers for commercial grade rebar at around NPR (Nepalese Rupee) 70,000-74,000/MT (INR 44,000-46,500/MT or USD 686-725/MT) ex-works, size 10-20mm and excluding VAT @ 13%.
Market sources reported few prime brands rebar (produced through prime quality billet) are even quoted at NPR 74,000-77,000/MT (INR 44,000-48,400/MT or USD 725-755), ex-works, size 10-20mm and excluding VAT @ 13%.
Major re-roller based in Kathmandu & Birgunj reported prices are firm but due to volatility in Indian steel prices, Nepal buying is weak in last couple of days.
A re-roller based in Kathmandu, whose monthly production of rebar and structures is around 5,000 MT stated that “steel prices are firm currently in line with moderate demand. Prices are expected to remain in the same range as demand and supply are presently balanced. Also as there is marginal price changes in Indian steel, influencing Nepalese producers to keep offers firm.”
It should be noted that Nepal steel prices are highly influenced by Indian markets and since a month billet prices have marginally changed in India specifically in Durgapur, Eastern region which is the key supplier for Billet and other long steel products to Nepal.
Currently, Induction grade billet prices are hovering at INR 32,000-32,200/MT (USD 500-503) FoR Durgapur for local buyers and similar offers being assessed for Nepal on ex-mill basis. Although, Rourkela – Odisha based producers are negotiating billet export deals with Nepalese buyers at around USD 492/MT (ex-mill), which may soon take place as export realization improves.
Prime grade Billet last traded at CIF Nepal USD 550-555/MT which present offers are at USD 575-580/MT, Nepal’s largest steel manufacturer said.
Further, the Wire rod (5.5 mm) export offers by Durgapur, East India based medium mills to Nepal are assessed at USD 580-585/MT ex-mill. If market participants are to be believed there is shortage of wire rod with large producers even though on prices have stayed high due to healthy export bookings.
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