Indian secondary wire rod makers in Raipur and Durgapur decreased their offers by INR 1,100/MT and INR 1,700/MT respectively in May’16.
Indian secondary wire rod markers mainly based in Raipur and Durgapur started reducing their offers since early Apr’16 after a constant rise seen post the MIP implemented on 5 Feb’16.
During May’16, wire rod offers in Raipur and Durgapur decreased by INR 1,100/MT and INR 1,700/MT respectively. Whereas in Apr’16, it fell by INR 1,100/MT and INR 800/MT in the same respective market.
Traders/ downstream industries in north India prefer to buy wire rod from Durgapur rather than Raipur owing to better viability of material.
If we compare landed price of wire rod from Durgapur and Raipur to NCR/ Delhi, 5.5 mm wire rod prices from Durgapur to NCR/ Delhi landed at around 30,500/MT (inclusive of excise duty, CST and Freight @2,100/MT).
Whereas, if we procure the same grade material from Raipur to NCR/ Delhi, it will be available at about INR 32,200/MT (inclusive of all), which is expensive by around INR 1,700/MT than Durgapur.
However, wire rod manufacturers in Raipur are offering discount by upto INR 500-800/MT, depending on the quantity lifting and payment conditions, as per sources.
Primary market
One of the largest primary wire rod producers based in central India are offering material at around INR 35,100/MT for 6 mm landed at NCR/ Delhi region. It indicates gap between primary and secondary producers has widened recently.
Indian billet and wire prices as on 3 Jun’16
| City | MS Billet | M-o-M | 5.5 mm Wire Rod | M-o-M | Monthly Average wire rod prices (May’16) | Monthly Average wire rod prices (Apr’16) | % Change |
| Raipur | 21,200 | -700 | 26,300 | -1,100 | 27,000 | 28,500 | -5% |
| Durgapur | 21,150 | -950 | 24,600 | -1,700 | 25,400 | 26,900 | -6% |
Basic prices in INR/MT; ED and VAT/CST extra
Source: SteelMint Research
Note: Prices are basic, excise duty & other taxes extra
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