Nepal: Rebar prices drop further on weak demand, imported billet offers fall

Domestic rebar prices in Nepal dropped further by NPR 1,000-2,000/tonne (t) ($9-17/t), w-o-w, on poor demand. Also, mills' procurement of Indian induction furnace (IF)-route billets slowed down slightly as deals of around 3,000 t were confirmed this week compared to around 5,000 t concluded last week.

"Demand is poor here and stocks of rebars are rising continuously. To minimise selling pressure, mills are reducing their offers. Near-term outlook will remain sluggish," a source based in Kathmandu told SteelMint.

Current rebar offers of 10-20 mm size from mid-sized plants are reported at around NPR 80,000/t ($672/t), while those from the major mills producing premium brands are at around NPR 82,000/t ($689/t). Prices are on ex-works basis, excluding VAT and ED.

Indian IF billets prices drop by $20-25/t

As per SteelMint's assessment, Indian IF-route billet export offers to Nepal have dropped by $20-25/t, w-o-w and over 3,000 t of deals have been confirmed this week at $560-565/t exw-Durgapur, equivalent to $590/t CPT Nepal. Meanwhile, fresh offers have been floated at $555-560/t exw-Durgapur.

However, no firm bids and offers have been reported for the BF-route billets (produced by primary mills). Deals for the same were last reported at around $620-625/t exw (loaded to rake), equivalent to $640-645/t CPT Nepal.

Meanwhile, wire rod offers floated by mid-sized mills were reported at around $600/t exw, equivalent to $625-630/t CPT Nepal, down by $30/t, w-o-w.

Outlook

Amidst rising inventory in Nepal alongside sluggish Indian steel market trends, finished steel prices in Nepal are likely to remain under pressure, sources believe.