Escalation in Indian Wire Market on Semi Finish Shortage

Due to rising prices of raw material, the finished steel market is also showing some signs of improvement.

Scrap shortage all across North & West India has led to rise in Sponge prices, which in turn has affected Ingot & Billet offers. Prices of all grades of Wire have increased in past 2-3 days. Amid ongoing New Year holidays in China, export & import activities have halted completely.

Demand has increased for all products and reportedly many manufacturers have cleared their old inventory.

Currently in Raipur, prices of Wire Rod & 12G HB Wire have shown an increase of INR 800/MT W-o-W. While in Durgapur, prices of all grades of Wire have raised by INR 300/MT W-o-W.

As per a Wire manufacturer in Raipur, “As such no substantial demand of Wire exists in market, but due to rise in prices of products such as Ingot, Billet and TMT, Wire prices have also surged.”

He further added that rise in demand is of short-term nature and market is expected to remain stable in the days to come.

Traders are expecting the offers to remain same till budget announcement. Hike in import duty on finished steel products is anticipated in the upcoming Union Budget. The duty is expected to be 10-15% from present 5-7%, as per the present government’s ‘Make in India Initiative’. Market participants are expecting domestic market to remain bullish after budget.

In Raipur, GI Wire & Barbed Wire have also witnessed an increase in prices by INR 700-900/MT and are being offered at INR 45,200/MT and INR 47,000/MT respectively.

Weekly Change in Wire & Billet Prices

Basic prices in INR/MT as on 20 Feb’15
ED and VAT/CST extra
Source: SteelMint Research

Note: Prices above are including all taxes.