Indian Steel Export Trades to Nepal Remain Limited

As per trade sources based in eastern India, few deals of steel exports are taking place. No bulk deals were reported since more than a week as major mills in Nepal have sufficient stock for the rainy season.

The local steel demand in Nepal was reported less than average due to ongoing rainy season in the country which begin from July and ends in September. This has made finished steel market sluggish, resulting fall in local rebar prices which are currently reported at NPR 65,000-66,000/MT (USD 595-604/MT) as against in Jun'19 at NPR 67,000-68,000/MT (USD 613-622/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.

As per trade sources in India, regular deals of about 200-500 MT are taking place, although the bulk deals in which the material is supplied through rakes remained nil since a week's duration.

The fresh deals for small lots of billet (100*100 mm, induction grade) were reported at around USD 390/MT ex-mill at Durgapur, eastern India, this landed cost to Nepal would be around USD 415-420/MT CNF Raxaul border, Nepal.

In addition to this recently purchase of Wire rod (5.5mm, commercial grade & coil weight 500-700 kg) was confirmed by one of mid sized mills in Bhairva, Nepal at around USD 460/MT ex-mill (Durgapur), which is equivalent to USD 490/MT CNF Raxaul border, Nepal.

The buyers in Nepal also added that, deliveries of earlier booked materials are recent through the major Indian mills in rakes, resulting healthy availability of Billet & Wire rod with the major mills in Nepal. Hence they are not in hurry mood amid books closing tenure in Nepal which due date is 16th Jul'19.

Further, the export offers of Wire rod (5.5-6.0 mm, grade - SAE 1008) of Indian large mills heard at close USD 520/MT ex-mill, eastern India and freight cost learned at around USD 20/MT CNF Raxaul/Jogbani border, Nepal.

Last export tender to Nepal floated by Vizag Steel (RINL) was cancelled due to low bids than expectations. The highest bid for billet was reported at USD 410-415/MT, while for Wire rod at near to USD 490/MT ex-mill. As per sources, the company was looking to conclude it higher price by USD 15-20/MT than the bids received.