Sluggish demand and stagnant buying for Wire Rod have kept the prices stable in both Raipur and Durgapur.
Demand for Wire seems to be very sluggish in the domestic market. It is expected that the prices will remain under pressure in coming weeks.
Currently, 5.5 mm Wire Rod and 12G HB Wire in Durgapur are being offered at INR 37,000/MT and INR 39,600/MT respectively. Prices have remained more or less stable for a week. Moreover, 5.5 mm Wire Rod and 12G HB Wire prices in Raipur remain at the same level of INR 37,900/MT and INR 40,200/MT respectively since last two weeks. As per sources, few Wire Rod mills are offering the material at a discount of INR 300-500/MT, depending on the quantity ordered.
Production Cut continues in Wire Industry
A Wire manufacturer in Raipur urged, “Currently, we are running our plant in single shifts owing to low off-take and very limited booking from the traders.”
It seems that due to overall dull scenario in the Indian Steel market, the Wire market is also not picking up, which is leading to stability in prices of finished Wire products.
In Raipur, 12G GI Wire and 12G Barbed Wire are being offered at INR 46,000/MT and INR 48,200/MT respectively.
Note: Prices above are including all taxes
Imported Wire Rod cheaper than Domestic
As per a Wire Rod importer based in Mumbai, “Currently, imported Wire Rod is being offered at USD 400-410/MT, CFR Mumbai with 5% import duty, CVD & SAD extra. Prices have decreased from the last offers by USD 20-30/MT and are equivalent to INR 28,500-29,000/MT after consideration of import duty and port handling charges.”
Conversion Spread narrows
A Binding Wire manufacturer in Raipur stated, “There is limited buying of Binding Wire in the market and conversion spread has also narrowed to a large extent between HB and Binding Wire. In general, conversion spread is around INR 4,500-5,000/MT, which is currently hovering in the range of INR 3,500-4,000/MT; down by INR 1,000/MT.”
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