Nepal's domestic rebar prices surge on rising billet import offers

Indian billet export offer to Nepal surged by up to $20/t w-o-w. The re-rollers in Nepal, following suit, also raised rebar offers by NPR 1,000-2,000/t ($8-17/t) despite moderate demand.

Fresh offers for 10-20mm rebars were reported at NPR 92,000-93,000/t ($762-771/t). Prices were on an ex-works basis, excluding VAT.

As per the re-rolling mills, the ongoing fund and policies issue remains the major key factors behind weak finished steel demand. However, due to rising input costs, they are bound to raise their offers.

• Billets
  
  

Recently, a rake of BF-route billet deal from India were reported at around $670/t CPT Nepal, up by $5-10/t, w-o-w. While, the revised offers are expected to rise further.

Offers of IF-route billets also increased by $15-20/t w-o-w and stood at $655-660/t exw-Durgapur, equivalent to $680-685/t CPT Nepal. A few deals were reported at $650-655/t exw-Durgapur.

It is also learned that, the few plants in Nepal are also trading billets in local markets due to dull finished steel demand and the recent deals were reported at NPR 84,000-85,000/t ($696-705/t) exw.

Domestic billets are cheaper by $25/t compared to imported (Indian) billets, one of the re-rollers from Biratnagar, Nepal, stated.

• Wire rods
  
  

Following the surge in billet prices, offers of BF-route wire rods also rose by $10-15/t with fresh offers hovering at $760/t CPT Nepal. Demand for wire rods remained weak.

Offers from mid-sized mills (IF-route) were reported at $705/t exw-Durgapur, equivalent to $730/t CPT Nepal.

• Sponge iron
  
  

About three rakes of sponge iron export deals were confirmed this week.

Deals for two rakes of pellets-based DRI (PDRI, FeM 78%) deals were reported at around $450-452/t loaded to rake from Durgapur, equivalent to $473-475/t CPT Nepal.

One rake of iron ore-based DRI (CDRI, 100% lumps, FeM 79%) was reported at around $480/t loaded from Jharkhand, equivalent to $505/t CPT Nepal.