Amid weak semi finish market and poor demand in finished steel, wire manufacturers are cutting down their offers further. Binding wire offers declined sharply by INR 1,500/MT in Raipur.
Demand seems to be very sluggish in wire market and participants expect that prices will go down further in the weeks to come.
Currently in Raipur and Durgapur , 5.5 mm wire rod is being offered at INR 26,600/MT and INR 24,700/MT respectively (basic prices). MS billet prices in Raipur fell by INR 300/MT and wire rod by INR 200/MT in a week’s time, which is proportional. In Durgapur, billet prices fell by INR 500/MT and wire rod by INR 900/MT W-o-W, indicating more pressure on sales.
Reportedly, Durgapur market is facing production cut due to poor demand. Mills are operating at 40-60% capacity.
In Raipur, 12G GI wire and 12G barbed wire have maintained constant level of prices since a long duration. Demand for these wires has been good since past 15 days. They are being offered at INR 42,700/MT and INR 46,500/MT respectively (prices including all). On the contrary, binding wire market witnessed a sharp fall by INR 1,500/MT.
Indian billet and wire prices
|
City |
MS Billet | W-o-W Change | 5.5 mm Wire Rod | W-o-W Change | 12G HB Wire | W-o-W Change | 20G Binding Wire |
W-o-W Change |
| Raipur | 22,300 | – 300 | 26,600 | – 200 | 28,500 | – 200 | 32,600 | – 1,500 |
| Durgapur | 21,800 | – 500 | 24,700 | – 900 | 26,400 | – 900 | 33,400 | – 900 |
Basic prices in INR/MT as on 3 Aug’15; ED and VAT/CST extra
Source: SteelMint Research
RINL reduces wire rod offers
RINL has slashed its wire rod prices by INR 1,200/MT for Aug’15 delivery. Trade sources confirmed that there are further discounts of INR 500-700/MT on the price due to poor sales.
Imported wire rod offers up by USD 5-10/MT
Offers for imported wire rod have increased due to production cut done in Chinese mills. 6.5 mm wire rod of chromium added material is being offered at USD 345-350/MT and boron added at USD 365-370/MT, CFR Mumbai for September end and October first week deliveries (7.5% import duty and CVD 12.5%; SAD extra).
Reportedly, at present no bookings have been made at such higher prices and people are waiting for offers to go down. It will be interesting to note whether this upward movement in prices would continue or stabilize from here onwards.
As per sources, mesh quality wire rod is being offered at RMB 2,165/MT (ex-warehouse) in southern China and RMB 2,250/MT (ex-warehouse) in eastern China( RMB 1 = USD 0.16).
Global wire rod prices (mesh quality wire rod)
| Region | Wire Rod |
| China export (FoB main port) | 312.5 |
| CIS export (FoB Black Sea) | 380 |
| South East Asia (CFR) | 329 |
| Turkey export wire rod (FoB main port) | 427.5 |
| EU import (CFR main port) | 435 |
Prices in USD/MT
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