Domestic wire rod prices has seen a prominent hike in both Raipur & Durgapur markets, which knows as key suppliers for Wire rod to across the country.
The price hike was reported up to INR 900/MT is both East Region, Durgapur and Central Region, Raipur for all type of MS Wires.
The major reason in the price hike was due to the spurge in the billet prices even though the demand was average across the country.
Raipur, Chhattisgarh being the hub of Wire Rod manufacturer has reduced the output because the input cost is quite high and conversion is low. Thus, the manufacturers are not able to take their desired margins.
Furthermore, as per the sources in Durgapur, West Bengal, there is shortage of the material as the wire rod mills are being used for the rebar production as in bars the margins are good for the manufacturers. There are only few mills like (Paras Steel and Super smelters) which are running their mills for manufacturing of wire rod.
Outlook for Current Week (Week 14)
– Wire Rod manufacturers might come under price correction as the demand is not supportive and the prices have gone to its maximum.
MS Wire Prices as on 25 Mar’17 (Week 13)
| Region | Particular/Delivery | Size and Grade | 18th Mar’17 | 25th Mar’17 | W-o-W |
| East India | Ex-Durgapur | Binding Wire(20 Gauge) | 40,100 | 41,000 | +900 |
| HB Wire(12 Gauge) | 32,100 | 33,000 | + 900 | ||
| Wire Rod(5.5 MM) | 30,100 | 31,000 | + 900 | ||
| Central India | Ex-Raipur | Barbed Wire(12*12 Gauge) | 40,500 | 41,400 | +900 |
| Binding Wire(20 Gauge) | 37,700 | 38,300 | +600 | ||
| GI Wire(12 Gauge) | 38,800 | 39,650 | +850 | ||
| HB Wire(12 Gauge) | 33,800 | 34,600 | +800 | ||
| Wire Rod(5.5 MM) | 31,800 | 32,600 | +800 |
Basic Ex-works prices in INR/MT; ED and VAT/CST extra
Source: SteelMint Research
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