Nepal's rebar prices slip on dull demand amid decline in billet import offers

Domestic rebar offers in Nepal fell by NPR 3,000/t ($25/t) w-o-w, due to weak demand, which raised inventory at the mills. In addition, falling import offers for Indian billets have made trends sluggish and the majority of buyers are not holding large volumes of fresh bookings, sources based in Kathmandu stated.

Domestic rebar offers in Nepal currently stood at NPR 81,000-82,000/tonne (t) ($680-689/t) for 10-20 mm through the standalone mid-sized rolling mills. However, the plants which have CCMs (own billet plants) are selling depending on quantity and payment terms, sources mentioned.

Billets import offers fall

The Nepal mills remained less interested in procuring billets in bulk volumes and a few buyers booked as per necessity. Sources reported a few parcels (via road delivery) have been sold this wee at around $550-555/t exw-Durgapur, equivalent to $575-580/t CPT Nepal. These offers fell by $15-20/t, w-o-w.

Also, demand for blast furnace (BF)-route billets remained poor, while the fresh offers fell to around $620-625/t as against $630-635/t in the previous week, CPT Nepal. The last deals were confirmed at around $665-670/t, CPT Nepal, during Oct-end.

Offers for mid-scale mills' wire rods stand at $605-610/t exw-Durgapur, equivalent to $630-635/t CPT Nepal, down by $15/t, w-o-w.

Sponge iron offers fall in fresh deals

SteelMint confirmed about 2,000 t of sponge iron (mix of 70% lumps, 30% fines) export deals this week to Nepal. However, prices dropped in fresh deals by $10-15/t and the deals were reported at around $415/t, exw eastern India, equivalent to $440/t CPT Nepal.

Sources said a couple of plants are in the process of installing new furnaces. This will likely keep Indian sponge iron export demand strong.