Nepal: Lower offtake, drop in imported semis prices weigh down domestic rebar offers

The domestic rebar market in Nepal saw limited trade activities this week. Current prices of rebars (12mm) are in the range of NPR 93,000-94,000/t ($704-712/t) exw, excluding VAT, SteelMint noted. Offers remained rangebound this week after dropping by NPR 2,000/t ($15) last week. Limited inquiries at previous quoted offers and a decline in imported EAF/IF billets prices from India kept market sentiments bearish.

Import offers from India drop tracking decline in Indian offers: Imported steel prices from India inched down in recent deals.

1. Sponge import prices drop by $15-17/t w-o-w: No major deals were reported this week. And, the current offers stand at $435/t CPT Raxaul.
   
   
2. IF-route billet import offers fall by $15 w-o-w: Current offers of IF-route billets from India stand at $580/t CPT Nepal, falling by $15 w-o-w. Limited quantity deals were concluded from Durgapur-based players this week for Nepal. Indian-origin BF-route billet offers stand at $585/t ex-mill (equivalent to $605/t CPT Nepal).
   
   
3. Limited allocations of Indian HRCs for Nepal: Indian mills have limited allocations for HRC exports to Nepal for March shipments and pending deliveries of previous bookings. Last price indications were assessed at around $705/t CPT Nepal.
   
   

As power generation from the run-of-river-based powerhouses reduced due drop in water levels of rivers during the dry season. The Nepal Electricity Authority imposed power cuts for industrial use during morning and evening hours. Market participants reported lower steel capacity utilisation of around 60%. Despite this, rebar offers in the nation showed a downward correction since last week.

Market sources opined that Nepal's domestic rebar offers may fall marginally next week if bearish market sentiments continue to prevail next week.

To gain a deeper insight into the changing dynamics of Nepal's steel industry, book your seat at the 2nd Nepal Trade Summit to be organised by SteelMint Events on 1-2 March, 2023 in Soaltee Crowne Plaza, Kathmandu.