Nepal's steel imports rise 40% y-o-y in Jan-Jul'21

Steel imports into Nepal were recorded at 1.36 million tonnes (mn t) in the first seven months of CY'21 (Jan-Jul'21), according to customs data maintained with SteelMint. The volumes were up 40.2% y-o-y compared to 0.97 mn t seen in the corresponding period last year (CPLY). Out of the total imports, semi-finished steel accounted for the largest share at 776,728 t (up 49% y-o-y), while finished flats were at 389,037 t (up 28% y-o-y) and finished longs at 191,331 t (up 26% y-o-y).

Imports in Jan'21 remained the highest at 257,027 t which dropped for the next four months in a row due to demand weakness amidst resurgence in Covid-19 cases and stringent lockdown measures from late-Apr'21. However, steel imports picked up in Jun'21 with easing of lockdown restrictions and resumption of market activities. Imports in Jul'21 again dropped by 29% m-o-m to 0.15 mn t due to the onset of the monsoon.

On a yearly basis, imports fell by 12% in Jul'21 as against 0.17 mn t seen in the corresponding month last year.

Exports from India up 34%

India continued to remain the largest exporter of steel products to Nepal at 1.29 mn t in Jan-Jul'21, an increase of 34% y-o-y compared to 962,123 t in CPLY, as per customs data compiled by SteelMint. In Jul'21, steel exports from India to Nepal stood at 144,111 t, down 25% m-o-m compared to 191,330 t in Jun'21..

Interestingly, China has overtaken Japan to emerge as the second largest steel exporter to Nepal in Jan-Jul'21. China's total exports during the period stood at 63,919 t, a drastic 1,297% y-o-y increase as compared to 4,575 t in CPLY.

Outlook

Steel demand in Nepal (primarily for billets and long products) is likely to soften in the coming months due to slowdown in construction activities amidst the ongoing monsoon. This may also impact the country's steel imports in the near-term, SteelMint notes.