Indian Wire Rod Prices Stable in Week 26

Amid average demand and rising prices of billet in Raipur, this week wire market opened at same prices as it closed last week.

This week, wire rod prices in Raipur and Durgapur opened at INR 29,100/MT and INR 28,800/MT respectively(basic prices). These prices are similar to the last week’s prices. MS billet prices in Raipur went up by INR 300/MT W-o-W and in Durgapur it remained down by INR 150/MT W-o-W respectively.

Raipur’s conversion spread between GI wire and barbed wire has increased to INR 2,000-2,500/MT which was INR 1,500/MT in previous month. Industry participants mentioned that the gap is likely to sustain for a month owing to favorable season for barbed wire. Currently 12G GI wire and 12G barbed wire are being offered at INR 43,000/MT and INR 45,800/MT respectively (prices including all).

Meanwhile, Durgapur market recorded no major changes and the problem related to shortage of material has been reportedly resolved.

Wire Rod Imports

Offers for imported wire rod have declined due to weak Chinese market. Current offers for wire rods of 6.5 mm are prevailing at around USD 365-370/MT FOB China for July end deliveries, origin China.While current trading of ready stock is taking place at USD 380-385/MT CIF Mumbai.7.5% import duty, CVD 12.5% and SAD extra.

One of the officials from amongst primary producers in conditions of anonymity spoke, “After implementation of proposed Steel Quality Order (BIS) in wire rod, we may see a major decline in Chinese import from Sep’15 onwards.” (Quality order attached)

Link to Quality Control Order: DraftNot-130515

Indian Billet and Wire Prices

Basic Prices in INR/MT as on 30th June’15 ED and VAT/CST extra
Source: SteelMint Research

Global Wire Rod Prices

Prices as on 26th June’15,2015
Unit: USD/tonne