Large mills wire rod production surge by 7% in July while production from medium mills fell by 8%.
According to Joint Plant Committee – under the Ministry of Steel, Indian wire rod production increased marginally up by 1% M-o-M in July’18 and stood at 3,18,000 MT compared to 3,15,000 MT in Jun’18.
Wire rod production by large mills in Jul’18 rose by 7% to 1,99,000 MT compared to Jun’18. Out of large mills, JSPL and RINL observed a sharp increase in production by 43% and 16% respectively in Jul’18 compare to Jun’18 owing to increased capacity utilization.
However, SAIL’s wire rod production has decreased by 40% in July as company went for maintenance shutdown of its few Blast Furnace in Bhilai Steel plant (BSP) unit.
On the other hand, production from medium wire rod mills fall by 8% to 1,19,000 in Jul’18 compare to previous month.
Out of total wire rod production, large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL comprise of 63% market share in Jul’18 and rest was produced by other medium scale producers.
Wire Rod Prices:
Currently, the domestic trade reference prices by medium mills hovering at INR 39,000-40,000/MT (USD 560-574) ex-works, Raipur/Durgapur for 5.5 mm & commercial grade.
Large mills domestic offer for MS grade, 5.5 mm Wire rod assessed at around INR 41,500-42,000/MT (USD 595-603) ex-works, Central India.
Indian Wire Rod Production Apr-July’18
| Particulars | SAIL | RINL | TSL | JSWL | JSPL | Total ISP | Others | Total Production for sale | % Change |
| Apr’18 | 26,000 | 46,000 | 56,000 | 46,000 | 29,000 | 2,03,000 | 1,25,000 | 3,28,000 | |
| May’18 | 16,000 | 36,000 | 62,000 | 45,000 | 29,000 | 1,88,000 | 1,36,000 | 3,24,000 | -1% |
| Jun’18 | 15,000 | 45,000 | 60,000 | 45,000 | 21,000 | 1,86,000 | 1,29,000 | 3,15,000 | -3% |
| Jul’18 | 9,000 | 52,000 | 62,000 | 46,000 | 30,000 | 1,99,000 | 1,19,000 | 3,18,000 | +1% |
| Total | 66,000 | 1,79,000 | 2,40,000 | 1,82,000 | 1,09,000 | 7,76,000 | 5,09,000 | 12,85,000 |
Source: JPC, SteelMint Research
QTY in MT
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