Amid sluggish demand and tight liquidity in the market, wire market in Raipur and Durgapur dips further. Market participants unoptimistic towards demand improvement.
As per the data maintained by SteelMint for wire rod, offers hit the lowest in Raipur at INR 28,800/MT since Mar’12 and Durgapur at INR 29,800/MT since Feb’13. The offers were at around INR 39,500/MT for Raipur in Mar’12 and INR 33,300/MT for Durgapur in Feb’13(basic prices).
As a result of poor local demand and absence of demand from other states, prices of all grades of wire recorded further decline in prices this week. Dispatches remained low for GI wire in Raipur. Binding wire also observed a sharp decline of INR 1,000/MT W-o-W in Durgapur.
In Raipur, prices of 12G GI wire witnessed a fall of INR 1,100/MT and 12G barbed wire also fell by INR 600/MT W-o-W due to very weak demand. Currently it is being being offered at INR 42,000/MT and INR 44,500/MT respectively (including all taxes).
A GI wire manufacturer from Raipur remarked, “Market looks very cold due to shortage of projects from the government’s end and also low buying sentiments across India. We are also facing shortage of labour due to summer season.”
Future outlook
Wire manufacturers in Raipur are quite skeptical about further fall as prices are already hovering at their lowest levels.Traders in Durgapur confirmed about weak buying in the market and said that they are unsure about market picking up as they see no demand in the coming days. Indian market is also getting badly effected by import of wire rods which not only is cheap but of better quality, too.
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 | 25,200 | -800 | 28,800 | -800 | 30,600 | -800 | 35,800 | -600 |
| Durgapur | 25,400 | -800 | 29,800 | -500 | 32,200 | -400 | 38,500 | -1,000 |
Basic prices in INR/MT as on 19th May ’15. ED and VAT/CST extra
Source: SteelMint Research
Leave a Reply