Amid weak market conditions, Wire market on 1 May’15 witnessed a rise of INR 300-600/MT in all grades of Wire as Wire rod manufacturers in Raipur open prices above market expectations.
The Steel market has remained gloomy with dull demand and weak market sentiments across nation since a week. Demand of Wire In Raipur as well as Durgapur did not gain much momentum in the past one week with prices declining continuously. Due to hike in prices by some manufacturers in Raipur, the prices went high for a day and then remained stable.
A G.I wire manufacturer from Raipur commented, “Prices are expected to fall because very high prices will not be accepted in the market.There was cut throat price competition in the market earlier. But due to low conversion cost and high inventory manufacturers formed a group and opened high prices. Also, shortage of labour is being reported in Raipur due to which prices are stable.”
Earlier also, few Wire rod manufacturers used to open prices together (till first week of March’15) but due to dull demand the prices couldn’t sustain. Market participants see the same scenario as prices are opened firm by all manufacturer from 1st May’15. Sources say, it may surely support the falling prices and bring uniformity in the Wire market.
Wire Rod Imports
Sources revealed that imported wire rod offers were unchanged. 6.5 mm wire rod offers were dealt at USD 405-410/MT,CFR Mumbai, for May shipment, origin China. Wire rod 5.5 mm is assessed at USD 415-420/MT high by USD 10/MT. Import duty 5% & CVD 12.5% and SAD extra.
Outlook:
Wire manufacturers are very puzzled about the market direction. Few players predict that the prices will decline, while others suppose that it will remain stable. As per sources, Primary manufacturer, RINL, has also rolled over its Wire rod prices for May’15.
A trader from Durgapur remarked, ”Due to financial crunch in the market, there is no demand locally as well as from outstations. Also, this time the construction sector seems to be sleepy with very less demand in the Rebar market due to which the overall Steel market seems lifeless.”
Indian Billet and Wire Prices
| City | MS Billet | W-o-W Change | 5.5 mm Wire Rod | W-o-W Change | 12G HB Wire | W-o-W Change | 20G Binding Wire | W-o-W Change |
| Raipur | 26,000 | -100 | 29,800 | +300 | 31,600 | +100 | 36,400 | -400 |
| Durgapur | 26,450 | -50 | 30,300 | -300 | 32,700 | -300 | 39,800 | -200 |
Basic Prices in INR/MT as on 4th May’15. ED and VAT/CST extra
Source: SteelMint Research
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