Wire rod (non-alloy) manufacturers reported fall in production by 15-20% in H1 FY16 compared to H1 FY15.
On condition of anonymity, a secondary steel producer reported to SteelMint that wire rod production in its plant has reduced by 15-20% in H1 FY16 compared to last fiscal year. Chhattisgarh and West Bengal, the major hubs of secondary wire rod manufacturers, produce over 70% of wire rod in secondary market.
An official of Hira Steel’s RR Ispat unit reported, “Our wire rod production has been persistently falling since Apr’15 onwards due to low demand. Our plant have an annual capacity of 0.25 MnT and we are running our plant currently at below 90% production capacity.”
Similarly, a major producer in CG, Prakash Steel mentioned, “We have closed one mill this year, which we had been running at 50% capacity in order to reduce inventory level and also to match demand and supply sentiment.”
Meanwhile, a wire rod manufacturer, Gagan Ferrotech based in West Bengal also quoted, “Our plant is running below 85% capacity in this fiscal due to low demand from north India.”
In addition, a primary manufacturer has reported to operate its plant at below 90% production capacity.
Similar statement is quoted by a trader in West Bengal that Adhunik Steels is also not running its wire rod division completely.
On the flip side, JPC (Division of Steel Ministry) reported, wire rod (non-alloy steel) production has increased by 12% during Apr-Oct’15 compared to Apr-Oct’14.
Wire Rod Production in FY15 & FY16 (Apr-Oct)
| Producers | FY16 | Monthly Average | FY15 | Monthly Average | % Change |
| SAIL | 211,000 | 30,143 | 201,000 | 28,714 | 5% |
| RINL | 265,000 | 37,857 | 178,000 | 25,429 | 49% |
| TSL | 391,000 | 55,857 | 388,000 | 55,429 | 1% |
| JSPL | 218,000 | 31,143 | 150,000 | 21,429 | 45% |
| JSWL | 306,000 | 43,714 | 291,000 | 41,571 | 5% |
| Others | 1,202,000 | 171,714 | 1,114,000 | 159,143 | 8% |
| Total | 2,593,000 | 370,429 | 2,322,000 | 331,715 | 12% |
Quantity in MT, FY15 & FY16 are cumulative
Source: Steel Ministry, SteelMint
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