Mid sized Wire rod mills which are largely based in Central & Eastern India are maintaining conversion (margins) on average basis even though the demand is not up to mark.
As per data maintained by SteelMint, the mills in Durgapur & Raipur are trading wire rod and maintaining conversion of INR 5,000-5,500/MT from Billet (induction grade, 100*100mm).
The current workable price range of Billets in Raipur & Durgapur is hovering at INR 31,500-31,600/MT and the Wire rod 5.5mm spot trades assessed at near to INR 36,500/MT ex-Durgapur & INR 37,000/MT ex-Raipur, as per participants.
In general the mills & re-sellers/stockiest of Wire rod in Raipur, Central India are providing trade discounts on the quoted offers and today discounts heard at INR 1,000-1,200/MT and the offer prices of wire rod (5.5 mm) is hovering at INR 37,800-38,000/MT ex-plant.
Coming to Durgapur, eastern India where the mills are giving discount max of INR 100-300/MT on the quotation price and the latest offers reported at INR 36,300-36,500/MT ex-plant.
Secondary mills contribute close to 40-45% in India’s total wire rod production and remaining is produced by the large mills through the blast furance route.
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 which was produced through the medium scale producers, as per reports.
The current offers by large mills for SAE 1008 grade, 5.5-6 mm is assessed at around INR 43,000-44,000/MT FoR Chennai & INR 42,000/MT ex-plant, Jharkhand (excluding GST).
Export offers by the mid sized (secondary) mills hovering at USD 520/MT ex-mill at Durgapur & through the large mills at USD 540-550/MT ex-mill, eastern India. However there is no major inquiries from the Nepal, which is the large buyers of Indian Wire rod.
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