Nepal mills book about 15,000 t of Indian sponge iron, billets

SteelMint recorded total of around five rakes (15,000 tonnes) of sponge iron and billet bookings this week from India to Nepal, which is just half compared to the volumes traded last week.

Purchases were low this week from the Nepal mills, due to healthy orders already placed in July and limited finished steel demand in the country amidst the ongoing liquidity crisis as well as the rainy season. Last week, SteelMint recorded about 25,000 t (10-12 rakes) of sponge iron deals to Nepal.

Sponge iron

About three rakes (around 8,000 t) of sponge iron bookings were concluded, while current offers were floated at $470-475/t LTW from eastern India, equivalent to $490-495/t CPT Nepal (FeM 80%, lumps 70%, fines 30%). These offers rose by $10/t, w-o-w, as per SteelMint's assessment.

Billets

Two-three rakes of BF-route billet deals were reported at around $630/t LTW-eastern India, equivalent to $640-645/t CPT Nepal.

However, demand for IF-route billets remained limited and fresh offers for IF-route billets stood at around $615-620/t exw-Durgapur, equivalent to $640-645/t CPT Nepal. These offers are more or less stable, w-o-w, as per SteelMint's assessment.

Wire rods

Demand for Indian wire rods remained poor as the Nepalese mills opted for Indonesian wire rods.

Current offers from Indonesia were reported at around $650-655/t CFR Haldia port (India) basis, equivalent to $695-700/t CPT Nepal, for September shipments. BF-route wire rod offers from India are hovering at around $835-840/t CPT Raxaul border (including 15% export duty).

Domestic rebar offers stable in Nepal

Domestic rebar offers in Nepal were stable this week after a constant drop over the last couple of weeks. Current offers for 12mm rebar are at around NPR 92,000/t ($726/t) on an ex-works basis, excluding VAT.

Local steel demand in Nepal remains weak due to the seasonal slowdown in construction works and liquidity crisis in the country with the recent revised monetary policy. The rise in interest rates led to cost-push inflation and forced participants to limit their investments in construction works, making investments expensive for the private sector.