Jindal Steel and Power Limited – (JSPL), one of the largest steel producer in India has marked sharp surge in wire rod production by 48% M-o-M in Jan’19.
As per JPC- Ministry of Steel, JSPL has produced about 34,000 MT Wire rod in in Jan’19 in comparison with 23,000 MT in Dec’18.
Further, the company is planning to increase steel production in the current quarter (Q4 FY’19) on all fronts and target to achieve output at around 1.5 MnT in Indian operations. Meanwhile in the previous quarter (Q3 FY’19), its steel production surged by 23% Q-o-Q and registered at 1.22 MnT.
Similarly other large mils being assessed surge in Wire Rod production M-o-M in Jan’19 – Tata Steel by 20% to 60,000 MT, JSW steel reported at around 47,000 MT with marginal rise, SAIL’s production up by 21% to 23,000 MT and RINL (Vizag Steel) production observed an increase of 8% to around 56,000 MT in Jan’19.
Overall Indian Wire Rod production by both large & medium scale mills increased by around 9% in Jan’19 and stood at 3,64,000 MT as compared to 3,33,000 MT in Dec’18, as per JPC.
Out of total Wire Rod output in Jan’19, the large mills produced about 2,20,000 MT, increase by 16% as compared to 1,90,000 MT in Dec’18. However medium mills recorded marginal growth by 1% to around 1,44,000 MT in Jan’19 as against Dec’18, which are mainly produced Raipur and Durgapur based mills.
During Apr-Jan’19, the total Wire Rod production in India (including large & medium mills) stood at around 3.39 MnT. Out of this, the large steel mills like – SAIL, RINL, Tata Steel, JSW Steel and JSPL contributed about 60% proportion and rest was produced through the medium scale producers, as per report.
Latest Prices Assessment
— Wire Rod prices in Durgapur hovering in the range of INR 36,200/MT (USD 510) for 5.5mm, commercial grade material, ex-works & excluding GST.
— Meanwhile prices for same material in Raipur evaluated at around INR 39,000/MT (USD 550) ex-works & excluding GST. Trade discounts being offered through the suppliers by around INR 1,000-1,700/MT depending on the quantity.
— Large mills domestic Wire Rod offer for SAE 1008 grade, 5.5-6 mm is assessed at around INR 43,000-44,000/MT (USD 604-620) FoR Chennai & INR 42,000-42,500/MT ex-plant, Jharkhand (excluding GST).
— Wire rod export offers through the medium mills located in Eastern India (Durgapur) reported at around USD 510-515/MT for commercial grade, while by large mills for blast furnace grade it evaluated at close to USD 565-570/MT, CNF Nepal.
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