Wire rod market in Raipur and Durgapur slumped by INR 1,700-2,400/MT M-o-M owing to scanty demand in the market
There has been a drastic fall in Indian wire rod market as prices collapsed from INR 800 to 1,200/MT W-o-W across Raipur & Durgapur. The prime reason on this bearish trend was reduced billet prices coupled with weak wire rod demand in the domestic market.
MS billet prices declined by INR 550/MT W-o-W in Raipur and by INR 900/MT in Durgapur. As per sources, the wire rod inventory in Raipur and Durgapur has piled up owing to the over-production; this also supports unequal fall in prices of billet and wire rod. The demand in local market as well as from other states has frozen; hence, there’s low movement of material.
MS Billet & 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 | 23,550 | -550 | 27,400 | -800 | 29,300 | -800 | 35,400 | -200 |
| Durgapur | 23,600 | -900 | 26,600 | -1200 | 28,300 | -1300 | 36,000 | -1300 |
Basic Prices in INR/MT as on 20th july’15 ED and VAT/CST extra
Source: SteelMint Research
Meanwhile, the finished wire segment like binding, GI and barbed wire did not witness substantial fall in their offers owing to seasonal demand. Currently in Raipur, 12G GI wire and 12G barbed are being offered at INR 43,500/MT and INR 46,500/MT respectively (prices including excise duty and VAT).
Wire Rod Imports
Imported Chinese wire rod offers continue to remain same as a result of weak global market. Current offers for wire rods of 6.5 mm of chromium added material are prevailing at around USD 340/MT and for boron added material at USD 360-370/MT, CFR Mumbai for August end deliveries (7.5%Import Duty & CVD 12.5% and SAD extra).
Leave a Reply