Nepal: Rebar prices plunge $34/t on weak demand

Domestic rebar prices in Nepal fell further by NPR 4,000/tonne(t) ($34/t), w-o-w, on weak demand. Also, in the same period, billet import offers from India dropped by $20/t.

Fresh rebar offers of 10-16 mm floated by mid-sized plants are reported at NPR 78,000-79,000/t ($653-662/t), while those from the major mills producing premium brands are at NPR 80,000/t ($670/t). Prices are on an ex-works basis, excluding VAT and ED.

Seasonal weak demand and rising rebars stocks with mills seem to have further pressured Nepal market along with the prevailing sluggish trend in India. In general, Nepal's domestic steel price movements are dependent s on the Indian steel market. With expected price corrections in India, the major plants in Nepal are hopeful of seeing the same.

Mills mulling production cuts

SteelMint in conversation with mills learned that they are planning to cut production to match supply-demand. However, a few plants, it is learnt, have also temporarily halted rebars production, while continuing with other finished goods to maintain their cash flow.

Billet import offers drop

As per SteelMint’s assessment, induction furnace (IF)-grade billet import offers into Nepal dropped by $15-20/t, w-o-w. Fresh offers are hovering at $535/t exw-eastern India, equivalent to $560-565/t, CPT Nepal, via road delivery.

Meanwhile, there are no fresh import deals reported for blast furnace- (BF) grade billets. Latest offers for Jul'21 are yet to be floated. The last deals for the same were assessed at nearly $640-645/t, CPT Nepal, in mid-Jun'21. Meanwhile, current bids (buying) interest for the same have assessed at around $600-610/t, CPT Nepal.