India: North-East Buyers Book Wire Rod from Central India

SteelMint in conversation with buyers in North-east regions – Punjab, Delhi & U.P learned that, they have shifted their purchase preferences to Raipur, Central India.

Earlier these sources used to buy material from Eastern India-Durgapur, however low cost Raipur material of INR 800- 1,000/MT have influenced them to shift their purchase interest.

The current trade reference prices of 5.5mm Wire rod is hovering at INR 35,300-35,500/MT ex-Raipur & INR 36,000-36,500/MT ex-Durgapur.

As per them, freight cost from Raipur to Punjab, Delhi is about INR 3,000/MT and for U.P close to INR 2,300/MT, which is similar in comparison from Durgapur to these respected markets.

Yesterday an official from a integrated plant in Raipur stated deals of more than 1,500 MT Wire rod for U.P & Delhi at close to INR 35,500/MT on ex-plant basis.

Similarly, the sources in Durgapur reported no major fresh inquiries from outside state and largely dealing with local buyers. Hence inventories with the mills are more than the average maintained, as reported by plants officials.

Landed cost comparison on Today’s Offer

Note: Prices are excluding 18% GST & Loading/unloading charges

Trade Updates

— Adhunik Industries Ltd based in Durgapur has reduced prices by INR 100/MT and reported Wire rod at INR 36,200/MT & HB Wire(12 Guage) at INR 38,700/MT ex-plant.

— Raipur based Real Ispat (GK TMT) has sharply reduced Wire rod offers by INR 500/MT to INR 36,700/MT. The prices are excluding trade discount.

— — Electrosteels in Bokaro, Jharkhand has roll-over Wire rod offers for Jun’19 and assessed (low carbon) at around INR 41,000/MT & high carbon Wire rod at about INR 43,000/MT, ex-plant & blast furnace grade material.

— Export offers of Wire rod declined by USD 10-15/MT in a week and currently evaluated at USD 510-520/MT ex-Durgapur, eastern India through the mid sized mills.