Large and medium mills wire rod production fell in Nov’18, as per JPC – Ministry of Steel data.
Indian Wire Rod production by both large & medium scale mills slump about 4% in Nov’18 and stood at 3,23,000 MT as compared to 3,35,000 MT in Oct’18 , as per Joint Plant Committee (JPC).
Out of total wire rod output in Nov’18, production by the large mills stood at 1,92,000 MT, down by 4% compared to 2,00,000 MT in Oct’18 and rest was produced by medium mills which are mainly located in Raipur and Durgapur.
In large mills, production by Tata Steel production was marginally down by 6% M-o-M in Oct’18 and stood at 60,000 MT, whereas JSW steel and RINL production was similar at around 47,000 MT in Oct’18 respectively. Meanwhile SAIL (Steel Authority of India Ltd) production recorded sharp fall by 41% M-o-M to around 13,000 MT and JSPL reported at around 25,000 MT, up by 9% in the same month.
As per sources, the reason behind the sharp fall in SAIL’s wire rod production during Nov’18 was due to lower capacity utilization and also company prefer to produce other products like rails in Bhilai Steel Plant units which is a foremost priority.
During Apr-Nov’18, the total wire rod production in India (including large & medium mills) stood at around 2.64 MnT. Out of this, the large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL contributed about 61% proportion and rest was produced through the medium scale producers, as per report.
Latest Prices Assessment
— The latest Wire rod prices in Durgapur hovering in the range of INR 36,500-36,800/MT (USD 522-527) for 5.5mm commercial grade material, ex-works & excluding GST.
— Meanwhile prices for same material in Raipur evaluated at around INR 38,400/MT (USD 555) 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 44,700-45,000/MT (USD 640-644) FoR Chennai & INR 42,500-43,000/MT ex-plant, Jharkhand (excluding GST).
— Export offers through the medium mills based in Durgapur, Eastern India for commercial grade wire rod reported at close to USD 525/MT, Ex-Mill.
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