Week 40 Updates: Indian Wire Rod Prices Continue to Dip

Last week, wire rod prices fell sharply by INR 900/MT in Durgapur and Raipur market recorderd a fall of INR 200/MT.

Indian wire market has became sluggish due to low demand from the end users. Decline in prices of raw material and semi finish has pulled down the market sentiments. The market is unlikely to show any different movements in the weeks to come.

Currently in Raipur and Durgapur, 5.5 mm wire rod is being offered at INR 26,600/MT (-200) and INR 25,100/MT (-900) respectively. Meanwhile, MS billet is being offered at INR 22,650/MT (-450) in Raipur and INR 22,400/MT (-550) in Durgapur.

A GI wire manufacturer based in Raipur commented, “Almost every year before Diwali, market remains dull. At present, we are running our mills at 50% capacity due to slack demand.”

Currently in Raipur, 12G GI wire and 12G barbed wire are being offered at INR 39,300/MT and INR 41500/MT respectively (prices including all).

Primary market: Reportedly, SAIL is offering wire rod of 7 mm and 6 mm at INR 32,500/MT and INR 33,200/MT respectively (FoR Punjab).

M-o-M Conversion Gap

Due to weak domestic market sentiments, the conversion gap has narrowed down in Durgapur and Raipur. The desired conversion gap between MS billet and wire rod is around INR 3,500-4,000/MT, which has reduced in Durgapur market.

Indian billet and wire prices

Basic Prices in INR/MT as on 5 Oct’15; ED and VAT/CST extra
Source: SteelMint Research

Imported wire rod offers: Offers for imported Chinese wire rod fell by USD 5-8/MT W-oW. As per sources, 6.5 mm mesh quality wire rod of Chinese origin is being offered at USD 288/MT, FoB China main port.

Global wire rod prices

Prices in USD/MT
Source: Steelmint Research