India: Wire Rod Prices correct in Durgapur & Raipur

Wire Rod prices in Durgapur & Raipur have declined by INR 800/MT and INR 200/MT W-o-W. Traders prefer imported Wire Rod over domestic as it is cheaper by around INR 2,000/MT.

Wire Rod (5.5 mm) prices, which were constant for last 3 weeks in Durgapur have corrected by INR 800/MT to INR 38,000/MT in the current week. The major reasons behind the price correction are slow buying and decline in Billet prices by INR 350/MT in the same period. 20G Binding Wire prices have also fallen by INR 500/MT to INR 48,500/MT W-o-W.

Central India Market Scenario

Currently, demand for Wires in Raipur is moderate and Billet offers have remained stable for last 1 week. 5.5 mm Wire Rod is being offered at INR 38,000/MT; down by INR 200/MT W-o-W. 12G GI Wire prices have marginally corrected by INR 200/MT and offered at INR 46,500/MT.

Meanwhile, Barbed Wire prices have declined by INR 300/MT with some demand coming in from other states. At present, it is being offered at INR 49,000/MT. Whereas, 20G Binding Wire prices remain stable at INR 45,300/MT.

Note: Above all prices are including Excise and VAT.

A Binding Wire manufacturer based in Raipur said, “Demand for Wires is moderate and buyers are hesitating to take positions and ordering the material in small quantities. But, we expect some improvement in the market from this juncture.”

Another trader based in Gujarat claimed that most Wire manufacturers are using imported wire (especially Chinese-origin) owing to lower prices as compared to domestic offers. Currently, imported Wire Rod is being offered at INR 36,800/MT (including excise and freight from Mumbai to Gujarat; VAT extra). Whereas, 5.5 mm Wire Rod from Raipur to Gujarat is being offered in the range of INR 39,000-39,500/MT after consideration of Excise, CST and freight but excluding VAT. Domestic supply of Wire Rod is more as compared to demand, he further added.

Weekly Price Change of 5.5 mm Wire Rod & Billet 

Basic Prices in INR/MT as on 29 Dec’14
Source: SteelMint Research