Secondary wire rod makers in Raipur and Durgapur have decreased their offers by INR 1,000/MT and INR 1,700/MT respectively in Jun’16.
Indian secondary wire rod markets based in Durgapur and Raipur have recorded a sharp fall in prices during the month of Jun’16, following corrections in billet prices and price competition among producers.
During Jun’16, wire rod offers in Raipur and Durgapur have decreased by INR 1,000/MT and INR 1,700/MT respectively. Whereas in May’16, it fell by INR 1,100/MT and INR 1,700/MT in the same respective market.
It is also important to note that presently wire rod prices in the secondary market are almost equal to the level which was prevailing just before the MIP implemented.
A per the data maintained by SteelMint, wire rod prices in Raipur and Durgapur stood respectively at INR 25,000/MT and INR 24,100/MT on 4 Feb’16 and MIP imposed on 5 Feb’16. Prices are basic.
Production & consumption of wire market
It seems that wire rod producers in Raipur are giving equally competition to Durgapur based producers in terms of pricing mainly for northern part of India.
Raipur is one of the major hub production of wire market and supply to all major market including west, south and north India and local market as well.
Secondly, Durgapur is another major production hub of wire market supply mostly to north-east states, local market and north India, including UP, NCR/Delhi and Punjab.
Indian billet and wire prices as on 2 Jul’16
| City | MS Billet | M-o-M | 5.5 mm Wire Rod | M-o-M | Monthly Average wire rod prices (June’16) | Monthly Average wire rod prices (May’16) | % Change |
| Raipur | 20,500 | -700 | 25,400 | -1,000 | 26,000 | 27,000 | -4% |
| Durgapur | 20,100 | -1,300 | 23,700 | -1,700 | 24,200 | 25,400 | -5% |
Basic prices in INR/MT; ED and VAT/CST extra
Source: SteelMint Research
Note: Price are basic, excise duty & other taxes extra
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