Nepal: Rebar offers remain firm despite rising billet import offers

Domestic rebar offers in Nepal remain firm despite a surge in billet import offers. Notably, billet imports happen predominantly from neighbouring India.

• Fresh offers for 12mm rebar stand at NPR 91,000/t ($727/t) on an ex-work basis, excluding VAT, stable as per SteelMint's weekly assessment.
  
  

Rebar demand remained dull in Nepal due to seasonal slowdown in construction activity along with the ongoing political concerns that have created liquidity issues impeding major projects. This has led to limited demand for finished products. Thus, despite rising raw material (billet, sponge iron) offers, producers are unable to raise their finished steel products prices, SteelMint leant from trade sources based in Biratnagar, Nepal.

• About 5,000 t of IF-route billet export deals from India were concluded this week to Nepal. The average price of these deals stood at around $585-595/t exw-eastern India, equivalent to $610-620/t CPT Nepal. While fresh offers were reported at $600-605/t exw Durgapur, equivalent to $630/t, offers rose by $10/t, w-o-w, as per SteelMint's assessment.
  
  
• Also, about three to four rakes (8,000-10,000 t) of BF-route billet export deals from eastern India -based mills were concluded this week to Nepal. The average price of the mentioned deals stood at around $635-640/t CPT Nepal.
  
  
• About 2,500 t (one rake) of sponge iron (FeM 79-80%, lumps 70% and fines 30%) export deals were reported this week at around $430-435/t CPT Nepal. These offers rise by $10/t, w-o-w.