India: Secondary Wire Rod Prices correct by INR 600/MT W-o-W

Wire rod prices in Raipur & Durgapur have declined by INR 600/MT on the background of sluggish demand from end-users and fall in Billet prices.

Currently in Raipur, Wire Rod (5.5 mm) is being offered at INR 41,800/MT and 12G HB Wire  at INR 44,000/MT (including all taxes); both corrected by INR 600/MT in the last one week. In Durgapur, Wire Rod (5.5 mm) is being traded at INR 40,200/MT and 12G HB at INR 42,600/MT; both declined by INR 600/MT in the same week.

According to the sources, Wire rod and HB Wire prices are likely to remain under pressure for short duration owing to weak demand in the market.

Wires from Raipur are supplied to all parts of India because of good viability. Around more than 50% of GI Wires from Raipur & Bhilai are supplied to other states and the rest is consumed in Chhattisgarh. Durgapur is also one of the major Wire rod & HB Wire producing region that basically focus on North market. But this year, demand remains slow owing to heavy rainfall in the region.

Billet prices in major market are also corrected by around INR 700-1,000/MT in the last 1-week. Currently, Raipur is trading Billet at INR 30,200/MT; down by INR 700/MT. Whereas, Durgapur Billet offers corrected by INR 800/MT to INR 30,300/MT in the last 1-week.

Raipur Binding (20G) prices are still cheaper by around INR 2,500-2,700/MT than Durgapur. Binding prices in Raipur are hovering in the range of INR 48,500-48,600/MT, while, Durgapur is trading at INR 51,200/MT.

According to one the Binding manufacturers in Raipur, “Sale of Binding Wire has fallen suddenly as there are few buyers in the market. It is expected that trades will slowdown as festivals are approaching in the upcoming months.”

 Wire Rod & Billet Prices and W-o-W Change (21-27 Aug, 2014)