Nepal's rebar prices fall but demand expected to grow

Domestic rebar offers in Nepal were down almost by NPR 5,000/t ($42/t) compared to those seen during the last week of Oct'21.

The prices fell due to corrections in the Indian steel market. However, it is expected that Nepal's rebar prices as well demand will pick up as festive season ends along with seasonal factors.

Domestic rebar offers in Nepal are currently at NPR 83,000-85,000/tonne (t) ($697-713/t) for 10-20 mm through the standalone mid-sized rolling mills.

In addition, it is learned that the plants which have CCMs (own billet plant) are selling rebars at prices that are lower by NPR 3,000-5,000/t compared to the offers floated through standalone rolling mills, which are importing billets and whose input costs are spiking with the slapping of domestic duties of NPR 2,500/t as per the recent budget announcement.

Billet demand active

The Nepal mills are continuing to source Indian billets and wire rods since this is the demand season for construction.

Recently a few export parcels of IF-route billets were concluded at around $585-590/t exw-Durgapur, equivalent to $610-615/t CPT Nepal.

However, no fresh bookings of BF-route billets were reported with the offers at $630-635/t exw India, equivalent to $650/t CPT Nepal. Earlier, in the last week of Oct'21, about 5-6 rakes of deals were confirmed at around $ 665-670/t, CPT Nepal.

Offers for mid-scale mills wire rods stand at $635/t exw Durgapur, equivalent to $660/t CPT Nepal. A few small parcels were sold yesterday, as per trade participants.

Sponge iron demand growing

SteelMint confirmed two rakes of sponge iron export deals this week to Nepal. However, suppliers did not confirm the prices. Meanwhile, indicative prices for the deals were around $445/t, loaded from Odisha, equivalent to $470/t CPT Nepal.

Since the government has slashed the import duties on sponge iron to nil, demand for the material continues to remain active.

Outlook

Industry experts believe that trade will improve, which is likely to support steel prices in Nepal's domestic market as well in Indian exports, especially of IF-route steel.