India's Steel Export Trade Log to Nepal - Week 10, 2019

As per exporters in eastern India, the major re-rollers in Nepal have held back from making fresh bookings looking at higher price range and with expectation of further drop in export offers. However mills who have necessity are procuring material as per their requirement, they added.

Meanwhile it is being noted that, domestic steel demand in Nepal remained bearish and not up to to mark, resulting in healthy inventories as well as liquidity crisis with the mills.

The latest export offers for Indian Induction grade Billet (100*100mm) reported at close to USD 450/MT ex-mill at Durgapur, equivalent to USD 480/MT CNF Nepal (Raxaul or Jogbani border).

"About 500 MT billet has been booked by a Bhairva, Nepal based mill on urgent requirement basis and to keep the plant running owing to poor stock condition of Billet" one of the regular exporter from Kolkata, eastern India stated.

Meanwhile export offers for commercial grade wire rod (5.5) heard at around USD 520-525/MT ex-mill, Durgapur, for which landed cost to Nepal would be around USD 550-555/MT CNF Raxaul or Jogbani border.

In context to blast furnace grade Billet (large mills) export offers, currently hovering at USD 480-485/MT & for Wire rod (SAE 1008 grade, 6.0mm) at USD 560-565/MT CNF Raxaul border (Nepal).

Recently an export tender to Nepal of 5,418 MT Bloom (150*150mm) has been floated by Vizag Steel (RINL) - state owned steel maker for which bid due date is 8th Mar and the bids will remain valid till 15th Mar'19.

The company's previous export tender to Nepal for 8,127 MT Billet (90*90mm) which expired on 3rd Mar'19 was cancelled. The highest bid for the tender was reported at USD 430-435/MT, however the company's expectation was learned to be around USD 440-445/MT ex-mill.