Conditions of Indian Wire Rod manufacturers may worsen further; as the offers for imported wire rod have declined.
India in FY15 last quarter imported 2.5 lakh tonnes of wire from China and other countries. Major consignments in competitive offers of Boron and Chromium alloys added were reported from China. SteelMint assessed from importers that, domestic ancillary wire rod units prefer imported wire rod over domestic in terms of quality.
A Punjab based importer, a member of a cartel of 7 local manufacturers who shipped approx 15,000 MT every month, says, “Chinese offer has reduced to match the strengthened dollar. Present offer for 6.5 mm are at USD 392-395*/MT CFR Mumbai for May’15 shipment.” He added that a similar group of importers based in Mumbai also import approx 20,000/MT of the material every month. Shipments in April’15 dropped as Chinese mills were closed between Jan to Feb’15.
Quantity of Wire Import – Alloy And Non Alloy (QTY in MT)
| Monthly | (Ch-7227) Alloy | (CH-7217) Non Alloy | Total | Inc/Dec |
| Jan’15 | 82,145 | 9,383 | 86,128 | |
| Feb’15 | 85,903 | 11,301 | 97,204 | +12.8% |
| Mar’15 | 57,487 | 10,703 | 68,190 | -29.8% |
| April’15 | 32,525 | 10,769 | 43,301 | -36.4% |
* Import Duty 5% & CVD 12.5% , SAD and Clearing charges extra.
Source: SteelMint Research
Domestic Secondary Manufacturer
Wire market on 9 May witnessed an uptick in prices by INR 200-300/MT in Durgapur and Raipur, but prices may slump down soon due to unsupportive market
SteelMint assessed that market sentiments are likely to remain the same as stockists still report cheaper import prices and dull domestic demand. Payment conditions have worsened as inventory are not clearing fast enough. Traders are anticipating further fall in prices due to low raw material prices and increasing competition from primary manufacturers.
Primary Manufacturer
Sources revealed, SAIL (IISCO, Durgapur) is offering 8 mm wire rod at around INR 33,800/MT (ED Included, VAT Extra). Also a discount up to INR 500/MT is being given on bulk purchase. Similarly, a primary manufacturer is offering Wire rod (5.5 mm) at INR 33,000/MT, Ex-yard Mumbai & Chennai. Offers by secondary producers for 5.5 mm are at INR 32,000-33,000/MT in Mumbai (prices including excise and VAT Extra).
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 | 26,000 | +100 | 29,600 | +100 | 31,400 | +100 | 36,400 | 0 |
| Durgapur | 26,350 | 0 | 30,300 | 0 | 32,600 | -100 | 39,500 | -300 |
Basic Prices in INR/MT as on 12th May ’15. ED and VAT/CST extra
Source: SteelMint Research
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