India: Wire rod prices fall sharply as demand weakens

• End-users remain cautious amid uncertain market trends
• BF-origin wire rod prices drop INR 1,900/t ($22/t) m-o-m 

Indian wire rod prices dropped in May 2025. In the induction furnace (IF)-route segment, wire rod prices witnessed a monthly average decrease of INR 3,620/tonne ($42/t) to INR 42,322/t ($494/t) exw-Durgapur. Prices fell by INR 2,290/t ($27/t) to INR 43,655/t ($510/t) exw-Raipur as compared to April levels.

The spot trade reference price stood at INR 42,300/t ($494/t) exw-Raipur and INR 40,800/t ($477/t) exw-Durgapur as on 9 June.

Notably, for IF-route wire rods, Raipur in central India and Durgapur in the eastern region are the major supply centres catering to various other markets across the country. The cumulative daily production in these two markets is around 20,000 t, as per data maintained with BigMint.

In the BF-segment, wire rod prices (5.5-6mm, SAE1008) dropped by INR 1,900/t ($22/t) m-o-m to average at INR 51,600/t ($603/t) exw-Jharkhand in May.

Market dynamics:

Raw material price trends: The decline in finished steel prices was largely driven by a drop in prices of key raw materials — steel billets and sponge iron — used in IF-route production. Buying interest weakened and buyers largely adopted a wait-and-watch approach, concerned about inconsistent finished steel demand.

A significant price correction of INR 900-2,100/t in billet was observed m-o-m across major regions. The Indian sponge iron market witnessed a bearish trend in May, with market participants refraining from bulk purchases amid prevailing uncertainties. Prices declined sharply by INR 1,600/t and INR 2,100/t respectively in Raipur and Durgapur.

Buyers remain inactive: Buying enquires were sluggish. End-users like binding and GI wire manufacturers remained cautious about bulk procurement owing to uncertainty in market direction and purchased only as per requirements to run their mills. Additionally, wire rod manufacturers offered healthy trade discounts to liquidate inventories piled up in mills and as per previous bookings. This factor also helped balance bid-offer disparity in the spot market.

Primary market sees weak demand: In the BF-segment, wire rod prices (5.5-6mm, SAE1008) dropped by INR 1,900/t ($22/t) m-o-m to average at INR 51,600/t ($603/t) exw-Jharkhand in May. Average monthly prices dropped m-o-m amid sluggish demand in the domestic market. Wire rod demand remained weak throughout the month, leading to a steady decline in prices. Sluggish market sentiments further contributed to continued softening in prices.

Wire rod prices (5.5-6mm, SAE1008) were assessed at INR 51,000/t ($596/t) exw-Jharkhand, down by INR 200/t ($2/t) w-o-w as per BigMint’s assessment on 30 May.

Outlook:

Taking into account the current scenario, market participants are anticipating similar trends to continue in the near term. Buying enquiries are likely to remain slow as construction activities may be hampered with monsoon approaching.