Indian Steel Export Offers to Nepal Rally, Buyers Cautious

Mid sized mills have raised export offers to Nepal following hike in Indian domestic prices. However demand remained subdued on account of weak steel demand in local market of Nepal as well and equivalent landed cost of mid size & large scale mills steel.

The fresh export offers of induction grade billet (100*100mm) through the mid sized mills assessed at around USD 380-385/MT ex-mill , equivalent to USD 405-410/MT CFR Raxaul border.

In line offers by the large scale mills being on same range at USD 400-410/MT CFR Raxaul border, Nepal. Hence the major mills who buy material in volumes (almost a rake) are more inclined towards large scale mills rather to source from mid sized mills.

However the mills who buy material in average quantity of about 500-1,000 MT are sourcing billets from mid sized mills.

Further if we compare wire rod, the landed cost are equivalent of mid sized & large scale mills as fresh deals by large scale mills assessed at around USD 460/MT CFR Raxaul/Jogbani border. Although the mid sized mills sold material at near to USD 440/MT ex-mill at Durgapur, which landed cost would be around USD 465/MT CFR Raxaul border.

SteelMint in conversation with manufacturers in Nepal learned that, the local demand of rebar is not upto the mark, hence as per need they are booking raw materials and not maintaining major stock as capacity utilisation being near to 50%.

The local rebar prices were reported firm since couple of weeks and currently stood at around NPR 59,000/MT (INR 36,700/MT or USD 515/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.