Rising production & weak demand has resulted in sharp drop in wire rod prices by INR 200-400/MT (USD 3-6) on day trade activities through the medium scale mills.
Moreover in comparison on weekly premises, it has remained volatile by INR 300-500/MT in both Raipur & Durgapur market, which are the major producers of across all segment wires. About 6-8 secondary major mills are based in Raipur & Dugapur who’s monthly production is about 15,000-25,000 MT of each plant.
MS Wire rod production in India rallied through the mid sized mills and registered sharp hike M-o-M during Mar’19 by 70% to 155,600 MT. Meanwhile overall (non-alloy) wire rod production in India jumped by 37% to 373,600 MT M-o-M in Mar’19.
As per mill owners, in comparison to supply, demand is quite low. They also added lifting of material on average basis and there is no shortage of any material.
The current trade reference prices of 5.5mm Wire rod is reported at INR 36,800-37,000/MT ex-Raipur & INR 37,000-37,800/MT ex-Durgapur; excluding 18% GST.
SteelMint learned that, to ease sales volume, trade discounts in Raipur are healthier and assessed of INR 1,200-1,400/MT on 6th May’19, which in last week-end was hovering at INR 900-1,100/MT. Presently, almost all mills in Raipur are operational, as reported by sources.
Similarly in Durgapur, the mills have maintained production which was lowered during Apr’19 amid preference toward rebars due to good margins on strong demand.
Trade Wise
— Adhunik Industries Ltd based in Durgapur has reduced prices by INR 100/MT and reported Wire rod(5.5 mm) at INR 37,400/MT & HB Wire(12 Guage) at INR 39,800-38,900/MT ex-plant.
— Rashmi Metaliks in Khargapur(Durgapur) has cuts price by INR 200/MT and offering Wire rod(5.5 mm) at INR 37,200/MT & HB Wire(12 Guage) at INR 39,600/MT ex-plant.
— In Raipur, Wire rod offers through the Real Ispat (GK TMT) has lowered by INR 400/MT to INR 37,900/MT, size 5.5mm & excluding trade discount.
— Electrosteels in Bokaro, Jharkhand yet to revise prices for May’19, however current offers are prevailing at INR 42,000/MT , size 5.5mm, ex-plant & blast furnace grade material.
— Export offers through the mid sized mills hovering at USD 525-535/MT & by large scale mills(blast furnace grade) at around USD 540/MT ex-mill in eastern India.
Leave a Reply