Vizag Steel (RINL) has reported sharp increase in Wire rod production by 25% M-o-M in Sep’18. The company observed a sharp increase in production by 25% M-o-M in Sep’18 and stood at 71,000 MT. The company’s production surged in line with better capacity utilization.
However in line with total Wire rod productions in India by both large & medium scale mills observed marginal fall of 2% in Sept’18, as per Joint Plant Committee (JPC).
According to JPC – under the Ministry of Steel, Indian wire rod production stood at 3,46,000 MT in Sep’18 as compared to 3,53,000 MT in Aug’18, fall by 2% M-o-M.
Out of total wire rod production in Sep’18, production by large mills stood at 2,18,000 MT, down by 2% compared to 2,22,000 MT in Aug’18 and rest being produced by medium mills which are mainly located at Raipur and Durgapur.
However, production of other large mills i.e. Tata Steel and JSW Steel down by 18-19% in the same period.
During Apr-Sep’18, total wire rod production in India (including large & medium mills) stood at around 2 MnT. Out of this, the large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL contributed about 61% production and rest was produced by other medium scale producers, as per report.
Prices:
At present, wire rod prices in Durgapur are hovering in the range of INR 40,500-40,900/MT (USD 554-560) for 5.5mm commercial grade material, ex-works & excluding GST.
Meanwhile, wire rod prices in Raipur evaluated at around INR 40,700/MT (USD 556) ex-works & excluding GST. Trade discounts being offered through the suppliers depending on the quantity.
Large mills domestic wire rod offer for SAE 1008 grade, 5.5-6 mm is assessed at around INR 46,000-46,500/MT (USD 628-635) FoR Chennai, GST extra.
Export offers through the medium mills based in Durgapur for commercial grade wire rod reported at close to USD 550/MT, Ex-Mill.
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