Indian Wire Rod Prices Slip further, Binding Wire Prices Fall More Sharply

Low demand due to monsoons as well as falling prices of semi-finish have nudged wire rod prices in both eastern as well as central India

Indian wire rod market has become very dull due to very less demand from end users. Fall in raw material and semi finish prices, coupled with lack of infrastructural activities, have made the sentiments of wire market bearish.

Currently, in Raipur 5.5 mm wire rod and MS billet are being offered at INR 26,800/MT and INR 22,600/MT respectively, down by INR 600-950/MT. The same materials in Durgapur are being offered at INR 25,600/MT and INR 22,300/MT respectively (basic prices), down by INR 1,000-1,300/MT.

As per a GI wire manufacturer in Raipur, “Demand for finished wires like GI and barbed wire is good, but the prices of same are expected to come down within a week.”

Currently in Raipur, 12G GI wire and 12G barbed wire are being offered at INR 43,200/MT and INR 46,500/MT respectively (prices including all).

Last week, in Raipur and Durgapur, 20G binding wire recorded a major fall of INR 1,300-1,700/MT. The reasons for this sharp decline was low demand. Also, many small mills in Raipur reduced their offers which compelled the large manufacturers to lower their offers as well.

Primary Market

Sources revealed, SAIL (IISCO steel plant, Durgapur) is offering 8 mm and 10 mm wire rods at around INR 32,600/MT, and 6 mm wire rods at INR 34,500/MT FOR North India (prices including CST,ED & freight). It was also reported that RINL may slash its prices in the coming month. Currently, it is offering wire rods at INR 35,500/MT, FOR Chandigarh (prices including ED, VAT extra).

Wire Rod Import Prices Dip by USD 5-10

Import offers for 6.5 mm wire rod continue to remain same at USD 330-340/MT for chromium added material and at USD 350-360/MT for boron added material, CFR Mumbai for August end and September deliveries (7.5% Import Duty & CVD 12.5% and SAD extra). Reportedly, at present importers are in no mood to make further bookings for imported material due to poor buying sentiments in Indian market.

An importer remarked, “Currently, chromium added material will cost INR 24,500-25,000/MT (USD 330), while local prices for wire rod in Raipur are at INR 29,000/MT. The viabiltiy of Chinese wire rods at present is quite good.”

Indian Billet and Wire Prices

Basic Prices in INR/MT as on 27th July’15 ED and VAT/CST extra
Source: SteelMint Research