Nepal's Billet Buying from India Remains Weak Ahead Half Yearly Closing
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The mills in Nepal were reported to hold back from making major fresh purchases amid half-yearly financial closing and continued poor demand of finished steel products in the domestic market. As per reports, the Nepal industries have to pay their half year tax dues to the authorities by 15th Jan every year.
SteelMint analysed amid financial year closing the major buyers hold back fresh bookings as fresh LC's through the banks would take some time.
As per sources, the small lots of Billet being taking place nearly at USD 435/MT ex-mill, Durgapur, equivalent to USD 460/MT CFR Nepal (Raxaul or Jogbani border).
Further it is being learned that a Southern India based large mill has concluded Bloom (150*150mm) export tender to one of the renowned mill in Birgunj, Nepal at near about USD 412-418/MT on ex-mill basis, which landed cost to Nepal would be around USD 455/MT CFR Nepal border.
Wire rod offers for Nepal - Meanwhile, the large mills in West Bengal & Jharkhand, eastern India have kept their offers firm for Wire rod at around USD 570/MT CFR Raxaul, Nepal. Although the deals under negotiation mode and are expected to soon take place, as reported by officials.
The last deals through mid size mills for Wire rod (5.5mm & commercial grade) reported at close to USD 510/MT ex-mill at Durgapur, equivalent to USD 535/MT CFR Nepal (Raxaul or Jogbani border).
Nepal's rebar prices dipped on stock pile up
As per conversation with Birgunj, Nepal based mid & large rebar mills, stock is quite high with them, this has led to significant fall in local rebar prices.
Also as per them, production by most of mills has narrowed down and few are in closing mode due to liquidity crunch as materials lifting is poor from the mills & retailers end too.
The domestic rebar prices through the mid & large mills reported at close to NPR 68,000-69,000/MT (INR 42,650-43,250/MT or USD 598-607/MT). The prices are ex-works, Birgunj/Bhairva(Nepal), 12mm & excluding local taxes.
