Nepal: Trade dull ahead of festive season, no major bookings for billets

Domestic rebar prices in Nepal were stable this week, while raw material (billets) import offers plunged by $20/tonne (t), w-o-w.

With the festive season starting from the upcoming week, there has been a weakness in demand in the domestic market in Nepal. As a result of this sentiment, re-rollers also postponed fresh bookings of billets imports from India.

Sources based in Biratnagar, Nepal said, domestic finished steel production will be comparatively low from the coming week, with a few plants even expected to shut down temporarily.

Current offers for the 10-20-mm rebar from the mid-sized plants are at around NPR 87,000/tonne (t) ($727/t), while those from the major mills producing premium brands are at around NPR 88,000-89,000/t ($736-744/t). Prices are on an ex-works basis and excluding VAT.

Indian IF-billets prices fall

As per SteelMint's assessment, fresh export offers for Indian IF-route billets to Nepal are being floated at around $605-610/t, which were hovering at $630-635/t exw-Durgapur, equivalent to $660/t CPT Nepal during last week. Demand for IF-route billets is negligible currently, compared to a few days ago.

Also, no fresh deals or buying interest were reported for BF-route billets with the offers assessed at around $640/t exw, equivalent to $660/t, CPT Nepal.

Meanwhile, wire rod export offers floated by mid-sized mills were reported at around $660-665/t exw, equivalent to $690/t CPT Nepal. BF-route wire rod (SAE 1008) offers hovered at $730-740/t CPT Nepal.

Sponge iron trade improves

SteelMint confirmed about three mini rakes of sponge iron (FeM 80-81%, lumps 100%) export deals this week to Nepal at an average price of $495/t loaded on to rake, eastern India, equivalent to $520/t CPT Nepal.

Sources reported, since the government has slashed import duties on sponge iron to nil, these deals have taken place, and dispatches of the same are in pipeline.