Last week, wire market in eastern India went up, while prices in central India after surging, declined slightly.
Indian wire rod market witnessed mixed sentiments last week. Prices of wire rod went up INR 300-500/MT W-o-W in Raipur and Durgapur. The market is expected to sustain at this level.
The increase in prices of wire rod is mainly because of rise in MS billet prices, which increased by INR 300-500/MT W-o-W.
The finished wire drawing market is getting dull slowly due to end of seasonal demand. In Raipur, 12G GI wire is being offered at INR 41,800/MT, down by INR 700/MT W-o-W and barbed wire at INR 46,500/MT (prices including all). Reportedly, central India is facing shortage of barbed wire, which is why prices of the same are not going down.
“Wire rod plants will have to shut down their operations soon if they do not get the desired conversion of around INR 3,500-4,000/MT. Also, the plants are currently running at their breakeven points. Reducing prices further will bring them loss,”commented a GI wire manufacturer from Raipur.
Primary Market Offers: Reportedly, SAIL (IISCO steel plant) is offering 6 mm wire rod at INR 30,400/MT, Ex-Bokaro depot (price including VAT). RINL is offering 6.5 mm wire rod at INR 36,750/MT (prices including excise duty, VAT extra). Sources confirm that there are further discounts of INR 500-700/MT on the offer price.
Imported Wire rod Offer: As per sources, 6.5 mm mesh quality wire rod of Chinese origin is being offered at USD 320-325/MT FOB China main port. Offers are up by USD 5/MT. CIF cost would be approximately USD 360-370/MT.
MS 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 | 22,800 | + 500 | 26,900 | + 300 | 28,800 | + 300 | 31,700 | – 900 |
| Durgapur | 22,100 | + 300 | 25,200 | + 500 | 26,900 | + 500 | 33,700 | + 300 |
Basic Prices in INR/MT as on 10th Aug’15; ED and VAT/CST extra
Source: SteelMint Research
Leave a Reply