Indian Wire rod offers saw a sharp hike in Mar’17 up to INR 2,600/MT in Central India and INR 2,500/MT in East part. These markets are the major merchant suppliers to entire India.
On monthly average basis, Indian Wire rod (5.5 mm) commercial grade prices in Mar’17 assessed at INR 31,600/MT (+9%) ex-Raipur & INR 30,000/MT (+8.9%) ex-Durgapur.
As per the market participants in the Industry, there was bearish demand in wire since the start of the month and the hike in prices was because of increase in the Ingot/Billet prices.
On contrary with the manufacturers in Raipur (Central Region) & Durgapur (East India), the demand was average in line with the good stock available with the suppliers.
Also, the manufacturers stated that the large share of plants had switch to make rebar instead of wire to extract good profit margins.
It should be noted that, the conversion spread from billet to rebar during the Mar’17 have increased about INR 1,000/MT to INR 5,000/MT in the both Raipur & Durgapur market. While, correction have been recorded for wire rod.
Further, in Durgapur (Eastern Region), the sources stated that there are few plants involved currently in Wire Rod manufacturing namely Super Smelters, Paras Steel and Rashmi Steel & rest are being shifted to make rebar.
The surge in the prices which were at high range; Raipur at 2 years & Durgapur at 22 months high. The current, price range were last reported in Raipur (Feb’15) & in Durgapur (May’15). Considering monthly average prices.
Source: SteelMint Research
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