Nepal: Rise in imported billet offers pushes up domestic rebar prices $25/t

Domestic rebar prices in Nepal increased by NPR 3,000/tonne (t) ($25/t), following a rise in billet import offers by $15/t, w-o-w. However, local finished steel demand remained low due to seasonal slowdown in construction works, sources based in Kathmandu said.

Current offers for 10-16 mm rebars floated by mid-sized plants are reported at NPR 78,000-79,000/t ($655-664/t), while those from the major mills producing premium brands are at around NPR 81,000-82,000/t ($680-689/t). Prices are on an ex-works basis, excluding VAT and ED.

Demand for Indian billet improves

Nepal's re-rollers resumed purchases of raw materials with the beginning of the new financial year. SteelMint confirmed around three rakes of billet deals to Nepal this week, of which one was from the mid-sized plants, ie, IF-grade, while the other two rakes have been concluded by primary mills for BF-grade.

• The deal price for the IF-grade billets (of 2,700 t) was reported at around $565/t exw-Odisha (loaded to rake), equivalent to $590/t CPT Nepal.
  
  
• BF-grade billet deals were reported at around $610/t exw (loaded to rake), equivalent to $630/t CPT Nepal.
  
  
• Fresh offers via road delivery from Durgapur based plants have been reported at $560-565/t exw, equivalent to $590/t CPT Nepal. Prices gained by $15, w-o-w, due to a rise in Indian domestic steel prices.
  
  

Finished steel

However, demand for wire rods remained poor as no fresh deals via rake delivery have been heard. Current offers are floated at around $615/t exw-Durgapur, equivalent to $640-645/t, CPT Nepal.