Mid-scale Indian mills are witnessing good enquires in the wire rod export market due to limited allocations by primary players, sources informed SteelMint. Secondary mills produce long steel products through the induction furnace (IF) route.
In a recent update received by SteelMint, Raipur, i.e. central India, based mills have bagged supply orders of two rakes (equivalent to 5,400 t) of controlled chemistry wire rod to Nepal. If sources are to be believed, the mills have settled deals at $455/t loaded to rake and the freight cost to Nepal is around $22-24/t. The carbon content in the wire rod ranges between 0.08% and 0.10%.
— While fresh offers are heard at $465-470/t exw and the deals are under negotiation, expectations are low about deals getting concluded at higher offers.
— In addition, in the last 7-10 days, Durgapur, or eastern India, based plants have concluded deals at an average of $450-455/t exw (via road delivery), equivalent to $480/t CPT Nepal. The carbon level of this material is up to 0.14%.
— The current trade reference price of 5.5mm wire rod (carbon up to 0.14%) in the domestic market stands at INR 33,000-33,200/t exw Raipur & INR 33,300-500/t exw Durgapur, excluding 18% GST.
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