India: Wire Market Bullish on Positive Sentiments and increasing Semi Finish Prices

This week, there’s a consecutive increase in wire’s prices by another INR 1000-1,400/MT after INR 700/MT hike last week

It’s a time to cherish for Indian Wire manufacturers as the market is in favour of increasing prices of wire. The price hike is owing to positive sentiments in the Finished long market before Financial Budget 15-16 as well as shortage of MS Ingot/Billet. However, traders also confirm about low Wire rod inventory in mills.

Durgapur: Wire of all grades have been through a rapid increase in prices by as much as INR 1,500/MT W-o-W. It was also learned from a trader that there is an upsurge in demand of wires from North India that added a good momentum to the trade.

As per a trader in Durgapur,” Trading have increased and now, we are witnessing shortage owing to low production.”

Raipur: Prices of 5.5 mm Wire rod and 12G HB Wire have increased by INR 1000/MT W-o-W. 12G GI wire & 12G Barbed wire’s prices are up by INR 300-500/MT W-o-W and offering at INR 45,800/MT & INR 47,200/MT in the market respectively.

A manufacturer from Raipur remarked, “There’s heavy discount offers on Wire rod’s bulk purchase. Although price are high as the input costs were high, but mills are offering discount of INR 500-900/MT to clear the inventory.”

Traders are expecting that offers will remain same till budget. Participants are optimistic on a hike on import duty on steel products in the upcoming budget. They anticipate a hike of 10-15% from current duty of about 5-7%.
Several another announcements related to infrastructure are expected in the budget, which will be presented on 28th Feb’15 that has lifted the mood of the Finish Steel market.

Weekly Change in Wire & Billet Prices

Basic Prices in INR/MT as on 27 feb’15, ED and VAT/CST extra
Source: SteelMint Research
Note: Prices above are including all taxes.