Curtailed production of GI wire in Raipur are likely to keep wire rod/HB wire prices under pressure. Also, there have been no recent export deals concluded by Raipur wire rod mills, which were earlier keeping prices supported. There are about 50 GI plants in Raipur/Bhilai, which consume over 5,000 t wire rod per day and as per sources, only 20% are operational presently due to low margins and poor demand. Currently, conversion speard from HB to GI wire rod is about INR 5,000-5,500/t as against the required spread of INR 7,000/t, for 12 gauge in Raipur.
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