Nepal's domestic rebar offers surge by NPR 9,000/t ($75), w-o-w

Indian billets export offers to Nepal have risen by $65/t w-o-w. The manufacturers in Nepal followed the suit and raised rebar offers due to a spurt in input costs along with surging prices of other metallics. Meanwhile, rebar demand is hand to mouth at current prices, sources based in Kathmandu informed SteelMint.

Fresh offers for 10-20mm rebars were reported at NPR 101,000-102,000/t ($826-834/t), up NPR 9,000/t ($75/t), w-o-w . Prices are on an ex-works basis, excluding VAT.

It has been learnt that Nepal re-rollers have shifted their buying interest towards Indian IF-route billets over BF- route material as primary mills are holding offers looking at better realisation in the overseas markets.

Recently, about two rakes (5,000 t) of IF-route billets were booked at nearly $695/t loaded to wagon from eastern India, equivalent to $720/t CPT Nepal. Fresh offers were floated at $720/t exw-Durgapur, equivalent to $745/t, CPT Nepal, up by $65/t against last week.

Domestic billets prices in Nepal also surged by NPR 7,000/t ($57/t), w-o-w, with fresh offers reported at around NPR 92,000/t ($752). Domestic billets are cheaper by $40-45/t compared to landed costs of imported (Indian) billets, the re-rollers said.

Following the surge in billets prices, offers of Indian IF-route wire rods also rose by $70/t, w-o-w, with fresh offers hovering at $775/t exw-Durgapur, equivalent to $800/t CPT Nepal.

• Sponge iron
  
  

About five rakes of sponge iron export deals were confirmed this week at a price range of $515-535/t loaded to wagon, eastern India. The freight charges were at around $25/t CPT Nepal. (FeM 80%, lumps 70%, fines 30%).

Amidst higher billets offers, the hot charging plants are aggressively booking sponge iron amidst expectations of a further increase in prices due to higher coal prices globally.