en.Wedoany.com Reported - Nepal rebar prices came under pressure, declining by NPR 1,000/tonne week-on-week to NPR 75,000/tonne ($506/tonne), primarily due to slowing construction activity and tightening liquidity.
This week, the Nepal rebar market continued to face pressure. Cash transaction prices fell by NPR 1,000/tonne week-on-week to NPR 75,000/tonne ($506/tonne). Bank guarantee transactions were quoted at NPR 77,000-79,000/tonne ($519-532/tonne). Market sentiment across the country remained subdued due to weak construction activity and cautious procurement.
Weak demand was the main driver of the price correction. The ongoing monsoon season and the fiscal year-end led to a further slowdown in construction activity, with reduced project execution limiting new steel consumption. Market participants noted that delayed government payments to construction companies caused liquidity tightening, curbing restocking intentions, with most buyers purchasing only on a need basis.
On the supply side, raw material trends sent mixed signals. Billet prices remained stable at $424/tonne CNF Raxaul, providing cost stability for re-rolling mills. However, sponge iron prices fell by $2-4/tonne CPT Raxaul, reducing input costs and easing upward pressure on finished steel prices. The softening sponge iron market, coupled with ample material supply, allowed suppliers to maintain competitive offers even with lower margins.
Regional market conditions also reflected weak demand. Induction furnace-electric arc furnace (IF-EAF) wire rod offers softened to around $510/tonne CNF Raxaul, indicating reduced demand in neighboring markets and reinforcing a cautious atmosphere in Nepal's long steel sector. Limited cross-border trading activity further weakened any substantial price support for domestic rebar.
Looking ahead, market participants expect construction activity to recover after the monsoon season, particularly following the release of government arrears and the restart of infrastructure projects. Until then, rebar prices are expected to remain under pressure, with demand conditions continuing to outweigh relatively stable raw material fundamentals.
