Indian Steel Export Offers to Nepal Fall by USD 10; Mills Turn Active for Bookings

Indian Billet & Wire rod export offers to Nepal fell by USD 5-10/MT W-o-W, following declining offers in domestic market. However with falling export prices, purchases have improved by Nepal based mills.

In recent conversation, SteelMint learned that close to 3,000-4,000 MT billets (100*100 mm) have been booked yesterday in small parcels by Nepal mills and the deal prices cited at USD 435-440/MT ex-mill at Durgapur. The prices fell by USD 10/MT as against last week at USD 445-450/MT ex-mill, Durgapur.

Freight cost via road to Nepal from Durgapur reported at USD 25-30/MT, though the landed cost of recent billet exports deal would be around USD 465-470/MT CNF Raxaul border.

Further the sources being reported, fall in Wire rod export offers and latest quotation by Durgapur based manufacturers reported at USD 515-525/MT ex-mill & size 5.5 mm. As per them deals have concluded in the beginning of week.

In line large mills Wire rod export offers, it evaluated at USD 530-540/MT ex-mill, eastern India. If participants are to be believed, decent volumes have been booked for Nepal, for which dispatches are to be made and freight cost stated at around USD 15/MT CNF Raxaul border, Nepal.

Meanwhile it is being learned that recent export tender floated by a stated owned mill to Nepal, has received average response in which lowest bid for the tender was reported at near to USD 418-420/MT, however highest bid heard at close to USD 430-435/MT ex-mill. Although, as per sources the company is not willing to conclude it, less than of USD 445-450/MT ex-mill.

As per local re-rollers in Nepal, the current season is most favourable for construction activities, hence domestic demand is slightly better for finished products. Local rebar prices by mid & large mills stated firm at close to NPR 67,000-68,000/MT (INR 41,650-42,350/MT or USD 593-602/MT); ex-works, Birgunj/Bhairva, size 12 mm & excluding local taxes.

Sources further stated that, raw materials (Billet & Wire rod) inventories are little bit low with the local mills in Nepal, thus demand is expected to remain supported.