Indian wire offers remained volatile due to lack of demand by domestic buyers. The producers mentioned, to carry deals discount is being offered on quoted price.
Raipur and Durgapur are the key MS wire suppliers across India, the manufacturers here reported lack of buying interest by stockiest as demand from major Wire consuming regions like North, South & Western India remained quite.
Central India – Raipur, is the major supplier for wire to Madhya Pradesh, Karnataka, Punjab and Maharashtra the inquiries from these states remained dull due to heavy rains. Currently the offer price in Raipur for Wire Rod 5.5 MM are reported at INR 32,000-32,500/MT ex-plant & excluding of GST at 18%.
Further in East India – Durgapur the trade participants mentioned demand is only from local buyers and few deals to NCR – Delhi. Offers for 5.5 mm wire rod are assessed at INR 30,000-30,300/MT (ex-plant & excluding of GST at 18%) and freight to Delhi via road at INR 2,200-2,400/MT.
Margins remained low in Durgapur against in Raipur – Central India
SteelMint learnt with Industry participants that most of the standalone wire rod producers in East India – Durgapur are either running their plants in low capacity or shifted to make rebars due to low margins. At present, the conversion from billet to wire rod is evaluated at INR 3,000/MT, which according to the manufacturer’s require around INR 4,000/MT.
However, in Raipur the manufacturers are fetching healthy conversion spread (margins) at INR 5,000-5,500/MT.
Note: Conversion spread mentioned on the basis of basic billet & wire rod trade prices.
Export Offers
SAIL (Steel Authority of India), floated an export tender for 5,000-7,000 MT wire rod which got expired on 18 Aug. According to the sources, the tender has received low bids than the company expected. Prior to this, in late July 2017, SAIL has concluded a wire export tender for 5,000 MT (Grade IS 2062). The deal’s price of this tender was reported around USD 500-505/MT, CFR to SEA which is equivalent to USD 470-480/MT, FoB India East coast.
Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel had concluded 10,000 MT wire rod coils (SAE 1008) export tender at the price of USD 520/MT, FoB on 10 Aug. Apart this, another lot of 11,000 MT wire have been sold out during 1st week of Aug’17 at USD 500/MT FoB India.
Chinese export and domestic offers have increased significantly over past few weeks due to government’s measure to eliminate substandard steel. In fresh update, the Chinese wire rod export offers surge further by USD 10-15/MT and are hovering around USD 560-570/MT FoB main port.
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