India: RINL corrects Wire Rod Price by INR 1,400/MT

Finished steel market is witnessing continuous price correction in the month of January. While, Wire prices of all grades in Durgapur and Raipur have declined by upto INR 700-1,400/MT M-o-M.

In Durgapur, 5.5 mm Wire Rod and 12G HB Wire are being offered at INR 37,000/MT and INR 39,600/MT respectively. A fall of INR 600/MT has been observed owing to continuous weak demand and correction in Billet prices by INR 300/MT W-o-W.

Prices in Raipur uptick on Low Production

In Raipur, prices have increased marginally by INR 200/MT. At present, 5.5 mm Wire Rod and 12G HB Wire are being offered at INR 38,000/MT and INR 40,300/MT respectively.

As per a Wire Rod manufacturer based in Raipur, “Currently, we are running our plant in single shifts as demand is not supportive to run the plant in full shift and market is unlikely to pick up in short-term.”

Primary Producers reduce Offers by upto INR 1,500/MT

Vizag Steel (RINL) has reduced Wire Rod prices by INR 1,400/MT in order to compete with the other primary producers’ offer. Currently, RINL and SAIL are offering 5.5 mm Wire Rod at INR 40,500/MT and INR 39,000/MT (including ED, CST and VAT extra) respectively in Punjab. However, imported material is being offered at INR 38,500/MT FoR in the same region.

Subdued Demand of Binding Wire & GI Wire

20G Binding Wire in Raipur and Durgapur is trading at INR 44,900/MT and INR 47,500/MT respectively. However, it was steady for last one and a half week. In Raipur, 12G GI Wire and 12G Barbed Wire prices are at the same level of INR 46,400/MT and INR 48,700/MT W-o-W respectively.

As per GI Wire and Binding Wire manufacturers based in Raipur, “Buying of finished Wire products like Barbed Wire and Binding Wire is slow in the domestic market.”

5.5 mm Wire Rod & Billet Weekly Price Change

Basic prices in INR/MT as on 10 Jan’15
ED and VAT/CST extra
Source: SteelMint Research

Note: All prices above are including all taxes.