Buoyed by strong demand Steel Prices in Nepal Soar Further by NPR 2,000-3,000/MT
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Re-rollers in Birgunj, Nepal reported sharp surge in local Rebar prices on weekly premises over improved demand, shortage of Billet as well as higher Indian export prices. The lack of railway rake available for bulk supply of steel from India has also played a vital role in the recent price rally in rebar prices in Nepal.
Current offers for commercial grade rebars are reported at around NPR (Nepalese Rupee) 74,000-75,000/MT (INR 46,400-47,000/MT or USD 715-723/MT). Meanwhile the prime brands offers are hovering at NPR 76,000-78,000/MT (INR 47,700-48,900/MT or USD 734-753). The prices mentioned above are ex-works, size 10-20mm and excluding value added tax (VAT) at 13%.
According to a Birgunj based prime rebar producer, Indian induction grade billet export prices increased by USD 10/MT and are currently hovering at USD 520-525/MT against last week at USD 510-515/MT, ex-mill, Durgapur (East India).
Nepal has around 20-25 steel mills out which merely 3-5 plants have their own Ingot/billet production while the rest dependent on Indian billets for rebar & structures production. With surge in Indian billet prices the manufacturers have no option other than hiking finished steel prices.
The latest sponge iron (FeM 78-80) purchases being reported by Nepal mills at around USD 345-348/MT ex-plant, Durgapur/Jamshedpur, East India. According to them, Indian sponge iron export prices are firm as against last week's offers.
The re-rollers in Nepal are importing wire rod from both India and China through India's Haldia & Vizag ports and the latest offers by Indian medium mills are reported at USD 605-610/MT (ex-mill) which CIF (landed) cost to Nepal would be at around USD 625-630/MT. The large producer's offers being reported for high carbon Wire rod at USD 715-720/MT CIF (Indo-Nepal border) and on ex-mill basis it cost at around USD 700/MT.
Indian Steel Prices Climb
Local steel prices in India continue to rise on strong inquiries and also due to high cost of raw materials. Over the last one week domestic billet prices have increase by almost INR 1,000/MT (USD 15), according to SteelMint assessment.
Today, the offers for furnace grade size 100*100mm are hovering at INR 33,800-34,000/MT (USD 520-523) ex-Durgapur, INR 32,800-33,000/MT (USD 505-508) ex-Rourkela - East India, INR 33,600-33,800/MT (USD 517-520) ex-Raipur - Central region, INR 35,200-35,300/MT (USD 543-544) ex-Ahmedabad/Mumbai & INR 35,000-35,500/MT (USD 539-547) ex-Hyderabad/Chennai, South India.
Steel Prices as on 07th Mar 2018, Ex-Durgapur - East India
| Products | Current Prices | W-o-W | M-o-M |
| Billet, Induction grade, 100*100mm | 33,900 | + 700 | + 2,400 |
| Sponge C-DRI, 78 FeM | 22,600 | + 500 | + 1,600 |
| Wire-rod, 5.5mm | 39,300 | + 800 | + 3,500 |
| Re-bars, 12mm | 38,500 | + 1,000 | + 2,900 |
| Angle, 110*110mm | 39,200 | + 500 | + 1,450 |
Prices excluding GST & Ex-works
Source: SteelMint Research
