Nepal Based Importers Exploring Options from China and Middle East
Indian mills to suffer as Nepal based importers are exploring options from China and Middle East amid price competitiveness.
SteelMint learned from market sources that Nepal based importers are looking to import billets and wire rod from Middle East and China respectively owing to lower price as compared to Indian mills.
India is the major exporter of steel products to Nepal. According to data maintained by SteelMint, India exported around 1,195,117 MT Billet and 241,676 MT Wire rod in the calendar year 2018. These numbers are higher more than 10% and 16% respectively from 2017.
"Two big mills are under negotiation to buy billets from Oman & wire rod from China. It is expected that landed cost would be lower by USD 30-40/MT compared to landed cost of Indian prime grade material" said a trader based in India.
Landed cost of billet would be around USD 445-450/MT CFR Nepal and wire rod would be around USD 550-555/MT, he further added.
Indian billet and wire rod tender to Nepal
Recent tender floated by Vizag steel, also know as RINL, a state owned mill, receives bid lower by USD 10-15/MT compared to last tender concluded in 3rd week of December 2018.
According to sources, the highest bid received for billet (90*90mm) reported at USD 435-440/MT & Wire rod at USD 535-540/MT ex-mill, Vizag. The tender is yet to be finalized.
Induction grade billet export
Meanwhile, induction grade billet export offers to Nepal from Durgapur (West Bengal) stands at USD 435/MT and Wire rod at USD 520-525/MT (ex-mill, Durgapur). Road freight from these mills to Nepal would be around USD 25/MT.
Nepal based importers are not very active at the moment and are waiting for Indian prices to drop further.
source: SteelMint
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