- Moderate inquiries keep IF wire rod spot market active in Feb
- BF prices drop INR 200/t m-o-m amid weak demand
Indian induction furnace (IF) route wire rod prices surged m-o-m in February 2025. In Durgapur, prices increased by INR 800/tonne (t) ($9/t) m-o-m to INR 43,066/t ($492/t) exw, while Raipur saw a rise of INR 400/t ($4/t) m-o-m to INR 43,383/t ($496/t) exw. Spot trade reference prices hovering at INR 44,300-44,700/t ($509-514/t) exw-Raipur and INR 44,100-44,500/t ($507-511/t) exw-Durgapur on 5 March.
For IF-route wire rods, Raipur (central India) and Durgapur (in the east) are the major supply centres catering to various markets across the country. The cumulative daily production capacity in these two markets is around 20,000 t, as per data maintained with BigMint.
In the blast furnace (BF) segment, wire rod prices (5.5-6 mm, SAE1008) dropped marginally by INR 200/t ($2/t) m-o-m to an average of INR 52,300/t ($598/t) exw-Jharkhand in February.
Furthermore, Indian primary mills have increased wire rod prices by upto INR 1,500/t ($17/t) for March 2025, sources informed BigMint.
Factors behind market dynamics-
Raw material prices see volatility: Prices of steel billets and sponge iron, crucial raw materials for producing wire rods, remained volatile in February. Prices fluctuated due to modest buying and cost variations in raw materials.
In the benchmark Raipur market, on a monthly average basis, billet prices increased by INR 300/t ($3/t) m-o-m to 39,335/t ($450/t) exw and sponge iron (PDRI, FeM 80% +/- 1) increased by INR 300/t ($3/t) to 24,800/t ($283/t) exw.
Market sees moderate inquiries: In February 2025, the IF wire rod market experienced moderate inquiries, which kept the spot market active. Additionally, improved trading activity in both wire rods and downstream products such as GI and binding wire contributed to reduced selling pressure. Meanwhile, manufacturers strategically reduced production to clear existing stock, leading to lower inventories at mills. Smooth dispatch of previously booked stock further indicated stable market conditions.
Primary mills see weak steel demand: In the BF-segment, wire rod prices (5.5-6mm, SAE1008) edged down by INR 200/t ($2/t) m-o-m to average of INR 52,300/t ($599/t) exw-Jharkhand in February 2025, prices edged down amid slow buying interest. Wire rod prices were assessed at INR 52,000/t ($595/t) exw-Jharkhand as per BigMint’s assessment on 28 February 2025.
Outlook-
Participants expect prices to continue rising in the near future, primarily due to constrained supply. Demand is likely to remain steady. However, there is a degree of uncertainty regarding how buyers will respond to these increases. As per the current market conditions, buyers may be reluctant to accept higher prices; the rest will depend on the dynamics in the raw material segments.
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