India: Wire Rod Prices in Raipur & Durgapur hit 1-year Low

Due to weak demand, Wire Rod offers in Raipur have fallen by INR 300-400/MT. Whereas, prices in Durgapur have marginally declined by INR 100/MT W-o-W.

Currently, 5.5 mm Wire Rod and 12G HB Wire in Raipur is being offered at INR 37,200/MT and INR 39,500/MT respectively; both down by INR 300/MT W-o-W. The offered price has maintained a declining level throughout the week, showing no signs of increase in demand.

In Durgapur, 5.5 mm Wire Rod and 12G HB Wire is being offered at INR 36,600/MT and INR 39,200/MT respectively. The prices of both the material have decreased marginally by INR 100/MT.

Demand of finished wire products in Raipur is not supportive. 12G GI wire and 12G Barbed wire prices have reduced by INR 500/MT and are being offered at INR 45,200/MT and INR 47,000/MT respectively. It is also expected that the market will not gain any substantial momentum in the coming days.

20G Binding wire in the state is being offered at INR 43,800/MT, witnessing a fall of INR 200/MT W-o-W. Whereas in Durgapur, it remains unchanged at INR 47,000/MT.

As per a trader in Durgapur, “Demand for all grades of wire is very dull in the market, as a result, few manufacturers have cut down production and no further improvements in future is expected.”

Domestic Users prefer Imported Wire Rod

Domestic end-users are willing to purchase imported Wire Rod over domestic as it is cheaper by INR 2,000-3,000/MT.

An importer based in Mumbai stated, “Domestic Wire Rod price from Raipur to Mumbai is around INR 33,500-34,000/MT including freight, E.D & CST extra. While, imported Wire Rod is being offered at around USD 410/MT, CFR Mumbai excluding 5% import duty, CVD & SAD extra. Prices are equivalent to INR 28,000-28,500/MT after consideration of import duty and port handling charges.”

 Weekly Price Change of 5.5 mm Wire Rod & Billet

Basic prices in INR/MT as on 30 Jan’15; ED & VAT/CST extra
Source: SteelMint Research

Note: Prices above are including all taxes