Indian Billet Exports to Nepal Doubles in Jan-Jul'17

Indian billet exports to Nepal doubled in the first seven months of the year when compared to the same period last year, rising to 650,000 MT.

According to data managed by SteelMint, total Indian billet exports increased 62.22 % in first seven months to 1,460,000 MT, which was 900,000 MT in same period last year. Total exports in 2016 recorded at 1,750,000 MT.

Billet exports to Nepal increased sharply on account of rising re-rolling facilities in the country. The demand for construction materials suddenly skyrocketed after the government lifted ban on construction of new buildings and houses that was imposed after the major earthquake, which hit Nepal in April 2015.

"Activities in construction works from houses to government infrastructure projects have picked up significantly across the country at present which has swelled the demand for construction materials, including that of iron and steel," said one of the re-roller based in Nepal, adding that a large number of steel billets is being imported from India following production constraint from domestic manufacturers due to rise in load-shedding and high power cost.

Notably Nepal does not have sufficient power supply that can support in house melting facility and have to be dependent on imported billet to meet demand from rolling mills.

Indian billet exports to SE Asian countries have increased to 460,000 MT (Jan-July'17) against same preceding last year at 11,000 MT due to absence of Chinese billets since mid 2016.

Indian billet exports to Bangladesh have decreased by 92.85 % as Bangladesh government had imposed an regulatory duty on imports of billet from all origins in last year budget, with an intention to promote local steel making.