Mid sized Wire rod mills based in Raipur & Durgapur hold offers firm despite low demand.
SteelMint in conversation with the mills assessed that at present demand is below than average, although they are hopeful for revival in demand just after Holi festival.
As per officials, with the labour arrival post Holi festival, demand likely to gain momentum as production of different Wires to resume ful-fledged which are mainly produce in South, North & Western India. As per them, presently labour shortage has reduced productions, made slow lifting along with slow down in construction activities.
Stock Position
It is analysed that, Durgapur – eastern India based mills have sufficient inventories of Wire rod for couple or thrice weeks which usually should be for 7-10 days, as per participants. However as there is hope for positive outlook, the mills are holding offers firm even though inventories are growing.
Meanwhile, in Raipur – Central India, Wire rod stock is less than the average maintained, stated by couple of sales head from renowned mills who’s daily production is about 1,000 MT. However for HB wire stock is sufficient with them, they shared.
Price range
— Real Ispat in Raipur has offered 5.5mm Wire rod at INR 38,000/MT ex-plant & excluding trade discount. Meanwhile workable price range in market assessed at INR 36,800-37,000/MT ex-Raipur & INR 37,500/MT ex-Durgapur for 5.5mm.
— The large mills offers for (SAE 1008) are stood at INR 41,500-42,000/MT ex-plant, Jharkhand.
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