Indian secondary mills raise wire rod export offers by $30 for Nepal

Limited allocation by Indian primary mills has given an edge to the secondary mills to conclude deals for Nepal. The induction grade-wire rod & billet export deals to Nepal by mid-sized mills have gained momentum since a few weeks.

-- The current offers of wire rod by central India based plants are quoted higher by around $30/t via rake delivery compared to the deals over a week ago.

-- The last deals for a couple of rakes (about 5,200-5,300 t) by Raipur based producers for controlled chemistry wire rod were reported at around $530-540/t, while the fresh offers are floated higher by $30/t to $570-575/t loaded to rake. The freight cost to Nepal is about $25/t.

-- In addition, Durgapur (eastern India) based mills are largely getting wire rod (commercial grade) export orders for delivery via road movement & fresh deals are assessed at $540-545/t exw, equivalent to $560-565/t CPT Nepal.

Also it is reported that primary mills have not floated fresh offers for billet, while the secondary mills are trading induction grade billets at around $490/t exw Durgapur (equivalent to $515/t CPT Nepal).

Outlook

Sources are hopeful that wire rod & billet prices are likely to remain strong with healthy orders of exports & active demand from the domestic buyers along with strengthening raw material prices.