Indian Billet Export Offers to Nepal Rally Following Domestic Price Gain

Following surge in Indian domestic prices, billet export offers to Nepal increased by USD 5-10/MT W-o-W. Deals for induction grade billet have been reported this week from eastern India, however primary mills are less interested to sell in Nepal owing to high offers in ocean market.

The recent trades for induction grade billet (100*100mm) learned at around USD 376-378/MT ex-mill at Durgapur, this is equivalent to USD 400/MT CPT Nepal. If sources are to be believed close to 2,000 MT deals were concluded yesterday by mid sized mills in eastern India via road route.

Coming to large scale mills, the last quotation was reported at near to USD 420/MT CPT Nepal. However no deals were heard as mills in Nepal are more inclined towards mid scale mills to reduce cost of production as domestic steel prices are maintained at firm levels in Nepal.

Inline wire rod, the mid scale mills offers reported at around USD 430/MT ex-mill at Durgapur, this landed cost to Nepal would be around USD 460/MT CPT Nepal. As per participants, demand is limited for mid scale mills wire rod due to attractive offers from large scale mills.

The offers through the large scale mills wire rod (SAE 1008, size 5.5mm) reported at near to USD 460-465/MT CPT Nepal, however the deals during last week learned at USD 455-460/MT CPT Raxul border for 3-4 rakes (around 8,000-11,000 MT).

Sources believe that, Indian billet prices to remain strong on account of less availability with large scale/primary mills due to healthy export bookings. The last deals for ocean market from India were learned at around USD 415-420/MT FoB India.