India: Nepal's Buying Interest Remains Bearish for Billet & Wire Rod

Indian exporters who largely deals with Nepal are poised over limited deals. Nepal's re-rollers have limited their purchase for Billet & Wire rod on account of sufficient stock & low demand, which raised liquidity crunch, as per participants.

The latest export offers for induction grade billets (100*100 mm) from eastern India, Durgapur hovering at USD 445-450/MT ex-mill, equivalent to USD 470-475/MT CFR Raxaul border(Nepal) & USD 445/MT loaded to rake, Odisha, this will equivalent to USD 470/MT CFR Raxaul border (Nepal). The offers increased by USD 3-5/MT (W-o-W) on surge in Indian domestic prices and strong rupee against US dollar.

As per exporters, in last couple of days small lots of Billet have been sold out at close to USD 440-445/MT ex-mill at Durgapur.

Meanwhile mute demand is being reported for Wire rod which offers are currently evaluated at USD 540-545/MT ex-mill, Durgapur. On CFR Nepal basis it would cost about USD 570/MT CFR Raxaul border, Nepal.

Rebar Prices Slump by NPR 7,000/MT (USD 62 or INR 4,400) M-o-M

The domestic rebar prices significant on fall as per mills in Birgunj, Nepal. As per them fund crisis rise in the nation, this led to poor off take in finished products led to surge in stock and made panic trends.

Post Diwali festival, there is peak season in Nepal for the construction activities, which boosts demand for steel, however in current year coincidentaly it weakened, he added.

The local rebar prices for commercial grade by small mills reported at around NPR 72,000-73,000/MT (INR 45,300-45,900/MT or USD 638-647/MT), fall from a week ago at NPR 74,000-75,000/MT (INR 46,500-47,150/MT or USD 656-665/MT) & a month ago at NPR 78,000-80,000/MT (INR 49,050-50,300/MT or USD 691-709/MT). The prices are ex-works, 12mm & excluding local taxes.