Wire rod prices reduced by INR 600-900/MT W-o-W amid falling prices of raw material and Semi finished steel. SAIL offers from IISCO plant in Durgapur aggressive against Secondary manufacturers.
As per sources, IISCO, Durgapur plant, is offering Wire Rod 5.5 mm at INR 36,000/MT whereas, offers by Secondary producers are at INR 36,200/MT , down by INR 900/MT W-o-W. Raipur offers for 5.5 mm are at INR 34,500/MT,down by INR 600/MT W-o-W, and cheaper by around INR 1,000/MT as compared to offers in Duragpur (prices including all taxes).
Wire Rod Imports
Sources revealed that offers for imported wire rod of 6.5 mm were made at USD 405-410/MT, CFR Mumbai, for May shipment, origin China. Wire Rod 5.5 mm is assessed at USD 415-420/MT, higher by USD 10/MT than 6.5 mm. Import Duty 5% & CVD 12.5% and SAD extra.
Imported Wire is trading at INR 33,500-34,500/MT in domestic market which is cheaper compared to that of Indian origin by INR 2,000-3,000/MT. Price inclusive of taxes, only VAT extra.
Sources also confirmed there are few imported consignments of Wire rod that may arrive by the first week of May.
Market Outlook
Indian traders and stockists are cautious considering regular dip in market. Few believed that prices are at the lowest levels and may revive anytime soon as raw material price will not go further below. Accompanied by slack demand from construction sector, financial crisis due to declining prices is also a major concern.
A GI Wire manufacturer from Raipur remarked, “Prices have bottomed out it may increase anytime as demand comes in.”
Indian Billet and Wire Prices
| City | MS Billet | W-o-W Change | 5.5mm Wire Rod | W-o-W change | 12G HB Wire | W-o-W Change | 20G Binding Wire | W-o-W Change |
| Raipur | 26,200 | -300 | 29,500 | -600 | 31,500 | -600 | 36,800 | -300 |
| Durgapur | 26,500 | -700 | 30,600 | -900 | 33,000 | -800 | 40,000 | -500 |
Basic Prices in INR/MT as on 27th April ’15. ED and VAT/CST extra
Source: SteelMint Research
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