India: Binding Wire offers in Durgapur fall by INR 1,500/MT W-o-W

Wire rod prices last week remain unchanged but falling Billet prices and low buying sentiment have reduced the offers this week. Secondary Wire rod prices in Durgapur decline by INR 550/MT, while, Raipur offers marginally down by INR 200/MT.

Secondary Wire rod demand remains weak owing to low buying in the market. Currently, 5.5 mm Wire rod in Durgapur is being offered at INR 38,800/MT (inclusive of all taxes); down by INR 550/MT, even though buyers are limited at the current rate. 20G Binding is at INR 49,300/MT; fall by INR 1,500/MT compared to last week but still the conversion from 12 G HB to 20 G Binding is around INR 8,000/MT.

A trader in Durgapur stated, “Wire rod demand is very limited in the market and buyers are expecting prices to correct further by INR 500/MT in next few days.”

Wire Rod offers in Raipur: 5.5 mm Wire rod prices in Raipur have slightly reduced by INR 200/MT to INR 39,300/MT. Demand heard to be moderate as per market participants. 20 G Binding wire is being traded at INR 46,500/MT and 12 GI Wire at INR 47,500/MT. GI manufacturers here said demand seems to be better in the current week as compared to last week and prices are likely to sustain at the current levels.

Import of Wire Rod from China: Import of Wire rod has increased during last 4-6 months in the coastal areas like Mumbai and Chennai. Central Board of Excise and Custom (CBEC) has made BIS norms mandatory for Rebar import but no restriction on import of Wire rod has been seen.

An importer based in Mumbai shared, “Currently, Wire rod imported in Mumbai is being supplied to major states such as Maharashtra, Gujarat, Rajasthan, MP including some part of North India. It is being traded at INR 33,300-34,000/MT (Excise and VAT extra), which is almost equal to Wire rod prices in Raipur. Therefore, prices are cheaper by almost  INR 2,000-2,500/MT after considering taxes and freight.”

Weekly Price Change of Wire Rod (5.5 mm) and Billet

Prices in INR/MT as on 13 Nov, 2014