Indian Billet Export Prices to Nepal Fall In Recent Deals

The mid size mills based in eastern India, Durgapur have concluded export deals to Nepal at a reduced price by USD 5-10/MT. The prices plunged in line with slump in domestic prices and limited demand from Nepal's re-rollers.

As per participants, the fresh deals for Billet exports have been concluded close to USD 430/MT ex-mill, equivalent to USD 455/MT CFR Raxaul border, Nepal. Although in the beginning of week, offers for the same were hover at USD 435-440/MT ex-mill & USD 460-465/MT CFR Nepal.

The exporters who largely deal with Nepal mills stated that, buying interest is poor since last few days owing to weak demand for finished steel and sufficient stock of billet with the major mills in Nepal. Hence the buying interest fell considerably.

Further the Wire rod export offers fell in same proportion and are currently reported at around USD 525/MT as against last week at USD 535-540/MT ex-mill at Durgapur. On CFR Nepal basis, the latest prices would be close to USD 550/MT CFR Raxaul border, Nepal.

Local mills under pressure on stock pile up

As per re-rollers in Birgunj & Bhairva, Nepal, the stock of rebar and other finished steel products has increased considerably owing to poor demand and decent production. They also indicated that if the situation remain same, they will opt to reduce production as liquidity crunch may arise with the healthy stock.

The domestic rebar prices reported further slump of about NPR 1,000/MT (USD 9 or INR 650) W-o-W.

The latest offers of rebar for the commercial grade reported at around NPR 71,000-72,000/MT (INR 44,200-44,850/MT or USD 614-622/MT), fall from a week ago at NPR 72,000-73,000/MT (INR 44,850-45,450/MT or USD 622-631/MT). The prices are ex-works, 12mm & excluding local taxes.

RINL export tender to set large mills offers

Market believes, the recent floated export tender by RINL will set the workable price range of large mills. RINL (Vizag Steel), in last week-end (8th Dec) had floated export tender to Nepal for Wire rods, Billets and Blooms & the quantity for each product is 5,418 MT (equivalent to 2 rakes) and the minimum offered quantity for each products is 2,709 MT.

The due date for the bid submission is till 13 Dec'18 at 15:00 hrs and the delivery period shall be 15 Jan'19. The offer given by the bidder will remain valid till 20 Dec'18.