Nepal: Domestic Steel Prices Drop by NPR 3,000/MT (USD 26) on Weak Demand

Domestic steel prices in Nepal witnessed a downtrend over weak demand and falling Indian steel prices in the secondary market, as per participants. In conversation with mills in Nepal, SteelMint assessed that currently production utilization through the major mills is not more than 60-70%.

Local rebar prices in Nepal fell by NPR 3,000/MT (USD 26) in last two weeks and are currently seen at around NPR 64,000/MT (INR 39,950/MT or USD 560/MT); ex-works, Birgunj/Bhairva, size 12mm & excluding local taxes.

The domestic steel demand in Nepal is weak due to liquidity crunch and falling Indian steel prices, sources reported. Thus, the manufacturers in Nepal are forced to cut their prices to attract buying inquiries.

As per SteelMint's assessment, Indian billet & wire rod export offers to Nepal plunged by USD 15/MT in last one week through the mid-sized mills and is currently evaluated at USD 425/MT for billet & USD 475-480/MT for wire rod, CPT Nepal via road delivery.

Further, as per sources, few parcels of mid scale mills' billet (100*100mm) to Nepal were concluded at around USD 400/MT ex-mill at Durgapur, equivalent to USD 425/MT CPT Nepal.

However, the large mills are not active for export deals to Nepal due to better realization in domestic trades amid limited availability of material along with healthy order in hand till Feb-Mar'20 delivery. Last deals of blast furnace grade billet through the large scale mills from eastern India reported at around USD 430-435/MT ex-mill (equivalent to USD 455-460/MT CPT Nepal).