Indian IF-route billets export demand improves amidst power cuts in Nepal

About 25,000 tonnes (t) of Indian IF-route billets export deals to Nepal were reported this week. Billets demand from the latter country improved significantly w-o-w amidst power crisis there due to seasonal factors.

The average price for the above-mentioned deals was assessed at around $750/t exw eastern India, equivalent to $770-775/t CPT Nepal, via road and rake delivery.

Meanwhile, no fresh deals were reported for BF-route billets (produced through primary mills) due to the disparity between bids-offers. Fresh offers are assessed at $790-800/t CPT Nepal.

Rebar

Local steel demand in Nepal remained moderate as majority of government projects have slowed down due to higher steel prices. Hence, at present, demand is majorly seen from the end users segment, sources based in Kathmandu informed SteelMint.

Current rebar prices in Nepal are hovering at around NPR 110,000/t ($906/t), stable on a w-o-w basis. Prices are on an ex-works basis, excluding VAT.

It is expected that domestic steel prices in Nepal are likely to remain volatile considering price fluctuations in India along with moderate demand.

Wire rods

Demand for wire rods remained limited from Nepal due to higher prices. Current offers for commercial grade (produced through mid sized plants) are hovering at $835-840/t CPT Nepal, while BF-route grade (SAE 1008) offers are reported at nearly $880/t CPT Nepal.

Sponge iron enquiries slow down

Amidst ongoing power crisis, enquiries for sponge iron have decreased recently. In latest deals, two-three rakes were reported to have been booked at around $570/t CPT Nepal (FeM 80%, lumps 70%, fines 30%).

Nepal's trade statistics (16 Feb'22-15 Mar'22)

• Wire rod imports were recorded at 12,800 t, down by 25% m-o-m.
  
  
• Billets imports were reported at 49,700 t, up marginally by 7% m-o-m.
  
  
• Sponge iron (DRI) imports increased sharply by 44% m-o-m to 63,850 t.
  
  
• Flat steel (HRC/plate) imports moved down by 22% m-o-m to 27,000 t.