Nepal's domestic rebar offers rise further on surging raw materials' import offers

Indian billets export offers to Nepal have risen by $70/t w-o-w. Following the rise in import offers of raw materials i.e. sponge iron and billets from India, rebar manufacturers in Nepal have raised offers to pass on the higher input costs to customers. Meanwhile, rebar demand in Nepal remains subdued due to the significant rally in its prices, sources informed SteelMint.

Fresh offers for 10-20mm rebars were reported at around NPR 110,000/t ($897/t), up NPR 8,000-9,000/t ($65-74/t), w-o-w. Prices are on an ex-works basis, excluding VAT.

• Billet import offers
  
  

It has been learnt that Nepal re-rollers have shifted their buying interest towards Indian BF-route billets over IF- route due to price competitiveness.

Recently, about two-three rakes of BF-route billets were booked at nearly $785-790/t CPT Nepal.

Fresh offers for IF-route billets (through the mid-sized plants) are floated at $785-790/t exw-Durgapur, equivalent to $810-815/t, CPT Nepal, up by $70/t against last week.

• Wire rods
  
  

Following the surge in billets prices, offers of Indian IF-route wire rods also rose by $75/t, w-o-w, with fresh offers hovering at $845-850/t exw-Durgapur, equivalent to $870-875/t CPT Nepal.

• Sponge iron
  
  

After hefty sponge iron deals concluded for Nepal till last week, there was hardly any deal heard this week. Fresh offers are assessed at $570-575/t loaded to wagon (eastern India), equivalent to $595-600/t CPT Nepal (FeM 80%, lumps 70%, fines 30%). These offers rose by $45-50/t, w-o-w, as per assessment.

Outlook

Due to the upcoming festive holidays in India & Nepal, buying enquiries from Nepal may remain limited. Also, the price movement of domestic finished steel in the latter country will depend on raw material prices globally.