Steel Ministry reported that wire rod production in Apr-Jun’16 fell significantly by about 19% compared to Apr-Jun’15.
Indian wire rod production has fallen significantly by about 19% in Apr-Jun’16 quarter as compared to the same period last year, as per the JPC – Ministry of Steel monthly data report on iron and steel.
Leading steel producers like SAIL, RINL, Tata Steel, JSPL and JSW Steel have reported to produce total 545,000 MT wire rod; their cumulative production fell by 15% in Q1 FY17 compared to Q1 FY16. While, other mini producers’ production decreased by about 24% to 380,000 MT during the same period.
Despite fall in wire production during Q1 FY17, prices of all major producers were under pressure during the period.
Currently, wire rod in Raipur and Durgapur is available at around INR 24,500/MT and INR 23,000/MT (ex-plant) respectively for 5.5 mm material.
Similarly, a leading wire rod producer is offering material at around INR 31,500/MT FoR (including excise duty, CST and freight); landed cost to Punjab.
A well-known wire rod dealer based in north India said, ”Due to low demand seen in downstream wire industry across north India, limited buying is taking place at present.”
He also added Durgapur is a major supplier of wire rod to north India owing to competitive price and freight advantage.
A wire rod manufacturer based in Durgapur said, “We had reduced production by around 25% from the last one month as market is not supporting now“.
Indian wire rod production during Apr-Jun’16
| Month | SAIL | RINL | TSL | JSPL | JSWL | Total ISP | M-o-M | Mini & other producers | M-o-M | Total Production | M-o-M |
| Apr’16 | 30,000 | 42,000 | 41,000 | 16,000 | 44,000 | 1,73,000 | 1,18,000 | 2,91,000 | |||
| May’16 | 27,000 | 51,000 | 51,000 | 9,000 | 54,000 | 1,92,000 | +11% | 1,35,000 | 14.00% | 3,27,000 | +12% |
| June’16 | 25,000 | 54,000 | 39,000 | 16,000 | 46,000 | 1,80,000 | -6% | 1,27,000 | -6.00% | 3,07,000 | -6% |
| Total(Apr- June’16)* | 82,000 | 1,47,000 | 1,31,000 | 41,000 | 1,44,000 | 5,45,000 | -15% | 3,80,000 | -24.00% | 9,25,000 | -19% |
| Total(Apr- June’15)* | 1,37,000 | 99,000 | 1,67,000 | 94,000 | 1,46,000 | 6,43,000 | 4,97,000 | 11,40,000 |
* Compared to Year-on-Year (Y-o-Y)
Quantity in MT
Source: JPC – Steel Ministry, SteelMint Research
Note: Prices are basic, excise duty & Other taxes extra
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