Eastern India Mills Conclude Billet & Wire Rod Exports Deals to Nepal

Eastern India (Durgapur) based couple of mills have concluded small lots of billet & wire rod export deals to Nepal yesterday, SteelMint learned from the exporters.

On an average the trade price for billet reported at around USD 445/MT ex-mill, equivalent to USD 475/MT CNF Raxaul border (Nepal). The quantity reported more than 1,000 MT.

Similarly deals of about 500-1,000 MT Wire rod (5.5) reported from the renowned mill based in Durgapur, which coil weight is more than of 1,000 Kg and the deal price reported at near to USD 525/MT ex-mill, this landed cost to Nepal would be around USD 555/MT CNF Raxaul border.

SteelMint also learned that, the offers for wire rod is being hovering at USD 515-520/MT ex-mill, Durgapur, but those coil weight is near to 500-700 Kg.

The above mentioned export offers to Nepal declined by USD 10/MT on weekly premises on account of falling prices in Indian domestic market and as per assessment the domestic offers of Billet & Wire rod in India moved down by INR 500-700/MT (USD 7-10), W-o-W.

Participants believe, prices are less likely to witness major change as raw materials price range are sustained, meanwhile average supply movement of finished products may result volatility in prices.

In line export offers through the large mills, it was more or less firm since quite some time and are currently evaluated at USD 550-560/MT for Wire rod (SAE 1008, size 5.5-6.0mm) and USD 480-490/MT for Blast furnace grade Billet; CNF Nepal, Raxaul border.

Recent on 18th Apr'19 RINL, (Vizag Steel) has concluded Billet (90*90mm) export tender to Nepal for 2,709 MT at around USD 450/MT ex-mill, which landed cost is equivalent to USD 485-490/MT CNF Nepal, Raxaul border.

India exported around 282,162 MT Wire rod during CY18, in which Nepal contributes about 87.5% with 247,010 MT. Similarly in Billet exports Nepal's proportion is about 49.1% with 1,182,432 from the total exports of 2,404,796 MT during CY18.

Rebar Prices Slump by NPR 1,000-1,500/MT (USD 9-14 or INR 625-950), W-o-W

The domestic rebar prices continued to remain under pressure as per mills in Birgunj, Nepal. As per them liquidity crunch is a key factor, this led to poor off take in finished products & price fall as well.

The local rebar prices for commercial grade by mid sized mills reported at around NPR 67,000/MT (INR 41,900/MT or USD 597/MT), ex-works, 12mm & excluding local taxes @ 13%.