Indian Steel Export Trade Log to Nepal
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The mills in Nepal remain less interested for fresh bookings following poor demand in domestic market, liquidity crunch and expectation of further fall in Indian export offers.
The domestic steel demand in Nepal continue to remain weak, leading to healthy inventories and fund crisis as well, as stated by local mill owners in Nepal.
The finished steel stock pile-up for more than a month's duration with the renowned producers, also they have sufficient stock of raw materials, they added.
Also as per them, the Indian suppliers are more aggressive to deal in bulk, although as the major mills have hold back purchases, only small deals are taking place at the moment.
The fresh offers for Induction grade Billet (100*100mm) reported at close to USD 430/MT ex-mill at Durgapur, this is equivalent to USD 455/MT CFR Nepal (Raxaul or Jogbani border).
Further the export offers for commercial grade wire rod (5.5) stated slight fall to around USD 505-508/MT ex-mill, Durgapur, which landed cost to Nepal would be around USD 530-535/MT CFR Raxaul or Jogbani border.
Further if participants are to believed, an Indian state owned steel producer has concluded wire rod export tender for 5.5-6.0mm at close to USD 537-540/MT (ex-mill) for 2 rakes (about 5,400 MT).
However, the company had also floated Billet & Bloom export tender to Nepal, in which Bloom tender has been settled near to USD 412-415/MT (ex-mill) for 2 rakes (5,400 MT), meanwhile for the same quantity Billet tender have been cancelled, as reported by participants.
As per them, the highest bid for Billet tender was at around USD 435/MT (ex-mill). However due to lower bids than expectations cancelled the Billet tender. The freight cost from the large mill to Nepal border is about USD 40-45/MT CFR Raxaual border.
Another large mill in eastern India who is making steel through the blast furnace route confirmed poor buying interest from the Nepal at the offers of USD 570/MT for wire rod & USD 470/MT for Billet, CFR Nepal (Raxaul border).
