Central India Wire Rod Prices Up INR 500/MT W-o-W

Amid,recent power failure in Urla industries, Raipur based wire manufacturers have increased their offers.

Wire rod market in Central India (Raipur) has witnessed an increase in prices by INR 500/MT W-o-W. The main reasons behind the surge in prices are power failure and improvement in demand just before the monsoon sets in.
A GI wire manufacturer remarked,”Power cut problem is expected to resolve by the month-end. In addition, recent improvement in demand will go down due to rainy season.”

As per sources, wire mills in Raipur are mainly located in Urla and Rawabhatta regions and in current circumstances, both the regions are tussling with power supply problems.

On the other hand, Durgapur market remained nearly stable this week; not showing any signs of improvement. It was also reported that there is shortage of binding wire due to continuous lack of labour.

Primary Market Views

Sources revealed, SAIL(IISCO steel plant, Durgapur) is offering 6 mm wire rod at around INR 32,600/MT(price including excise duty). Another primary producer, VSP is offering the material at INR 36200-300/MT, FoR Chandigarh (prices including all, VAT extra).

Wire Rod Import

Sources revealed that imported wire rod offers have declined further due to weak Chinese market. 6.5 mm wire rod of Chinese origin is offered at around USD 375/MT, CFR Mumbai for July shipment. 5.5 mm wire rod offers are assessed at around USD 395-400/MT.At present, 5.5 mm wire rod is being manufactured by very few Chinese mills (generally on order). Offers excluding import duty of 5% and 12.5% CVD and SAD extra.

In general,demand for imported wire rod is good, but buyers are asking the material at lower prices. As a result, offers are expected to go down further.

MS Billet & Wire Prices

Basic Prices in INR/MT as on 15th June’15 ED and VAT/CST extra
Source: SteelMint Research