Induction furnace(IF)-route wire rod (5.5 mm) offers across major locations in India increased sharply by up to INR 4,000/t. Better demand and a surge in sponge iron and billet prices led to the rally in wire rod prices, SteelMint understands.
Offers of IF-grade wire rods in Raipur, Chhattisgarh increased sharply by INR 4,000/t d-o-d to INR 52,000/t on 30 Sept’21 as against INR 48,000-48,200/t exw assessed the previous day. Raipur-based players sold material in large quantities with prices increasing consistently.
Even at other locations, offers remained on the higher side. In Durgapur, wire rod offers were at INR 49,500/t exw on 30 Sept, up by INR 3,000/t d-o-d, as per SteelMint’s assessment.
Prices rose significantly m-o-m too. IF wire rod offers in Raipur rose significantly by around INR 7,000 over this one-month period. The same stood at INR 44,500/t exw-Raipur on 31 Aug’21. In Durgapur, wire rod offers increased by INR 5,500/t m-o-m against INR 44,000/t a month back.
Reasons for the price rise
- Increasing prices of sponge iron and billets due to rallying coal prices in the domestic and global markets resulted in a consistent hike in IF-grade wire rod prices.
- In addition, strong demand even at increased prices is further indicating a positive price trend at least for time being, market sources said.
Outlook
Most market sources are optimistic on the short-term outlook as they believe prices may continue rising following a hike in sponge iron and billets prices with no possibility of a stop in surging coal prices.
Further, a possible hike in prices of primary mills’ wire rods is backing the positive outlook.
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