India: Billets export demand dull from Nepal, prices fall

Export demand for both Indian IF-and BF-route billets remained dull this week amidst subdued steel demand in Nepal. Besides, as mills had placed healthy orders last week, they preferred to hold back fresh bookings this week amidst declining steel prices in India. Thus, there are chances that the inquiries will resume once Indian steel prices are stable.

• Fresh offers for IF-route billets stand at $710-715/t exw-Durgapur, equivalent to $735-740/t CTP Nepal, falling by $35-40/t, w-o-w.
  
  
• Offers for BF-route billets moved down by $20/t, w-o-w, to $775-780/t CPT Nepal.
  
  

As per suppliers, there was limited buying interest on floated offers, hence, negligible deals happened this week.

Rebar

Local steel demand in Nepal remained weak amid increased liquidity crisis in the country following a decline in foreign exchange funds.

• Current rebar prices in Nepal are hovering at around NPR 108,000/t ($900/t), down by NPR 2,000/t ($17) on a w-o-w basis. Prices are on an ex-works basis, excluding VAT.
  
  

In terms of rebar stock with Nepal mills, it will remain stable as production is also affected due to power shortage, sources based in Kathmandu informed SteelMint.

Wire rods

• Indian export offers of wire rods also declined by $25-30/t, w-o-w. Current offers for commercial grade (produced through mid-sized plants) stand at $810/t CPT Nepal, while BF-route grade (SAE 1008) offers are at nearly $860/t CPT Nepal.
  
  

No fresh deals for sponge iron

• Sponge iron demand from Nepal continued to remain weak owing to power cuts. No fresh deals have been reported this week. Offers fell by $25/t, w-o-w, to around $530/t CPT Nepal (FeM 80%, lumps 70%, fines 30%).