India: Wire rod prices rise sharply in Jan’26; outlook remains positive

Indian wire rod prices surged sharply m-o-m in January 2026 in the induction furnace (IF) and blast furnace (BF) segments. Market sentiment was positive, supported by rising raw material prices and reduced inventory pressure at mills in December 2025. Wire rod prices increased by INR 3,400/tonne (t) ($38/t) to a monthly average of INR 43,700/t ($483/t) exw-Durgapur and by INR 3,200/t ($35/t) to INR 44,200/t ($489/t) exw-Raipur in January as compared to December 2025.

Spot trade reference prices of IF-route wire rods stood at INR 44,800/t ($495/t) exw-Raipur and INR 44,200/t ($489/t) exw-Durgapur as on 3 February 2026. BF route wire rod prices (5.5-6mm, SAE1008) were recorded at INR 52,300/t ($578/t) exw-Jharkhand on 30 January 2026.

Cumulative wire rod production through the IF and BF routes reached 7.8 mnt in CY’25, registering a 4% y-o-y increase from 7.5 mnt in CY’24, as per Joint Plant Committee (JPC) data.

Raw material prices surge: Indian sponge iron and billet prices strengthened in January 2026, supported by robust bookings secured by sellers in December 2025. However, market sentiment during January remained cautious to mildly positive. Some weakness was observed due to selective buying, as buyers shifted towards need-based procurement at elevated prices. Additionally, volatility in domestic finished steel segments during the month influenced offtake patterns and buying behaviour.

Considering Raipur as the benchmark, billet prices increased INR 3,300/t ($36/t) to INR 40,500/t ($448/t) exw and sponge iron (PDRI FeM 80% +/- 1) was up INR 1,400/t ($15/t) to INR 24,700/t ($273/t) exw (monthly average prices provided).

Trade activity in IF market remains moderate: In January, demand for wire rods remained moderate in the spot market. Healthy trade activity was observed in the initial phase of the month, supported by rising raw material prices (sponge iron and billets). However, lower buying enquiries and a lack of fresh bookings were witnessed in the latter half of the month at elevated offers. This was due to buyers’ sluggish lifting of previously booked material. Re-sellers sold material at lower prices for liquidity, which impacted trade activities. Such factors pushed manufacturers to increase trade discounts on spot offers.

Primary mills see recovery in demand: In the BF-based segment, wire rod prices (5.5-6 mm, SAE1008) increased by INR 3,200/t ($35/t) m-o-m to average INR 51,200/t ($566/t) exw-Jharkhand in January 2026. The BF wire rod market witnessed a gradual recovery in both prices and demand, in line with trends observed across other long steel products during the month.

Market activity was supported by steady end-user consumption from key sectors such as construction, automobiles, and agriculture. Ongoing infrastructure execution and consistent buying from auto ancillary and farm equipment industries helped sustain healthy domestic offtake. Improved demand conditions also encouraged major steel producers to announce subsequent price hikes, reflecting stronger confidence.

The near-term outlook for the IF-route wire rod market is positive, with expectations of continued stability and upward momentum. In the BF-route wire rod segment, private steelmakers are expected to undertake maintenance shutdowns in February 2026, which may impact wire rod production and lead to temporary material availability constraints. This supply tightness is likely to keep prices supported in the near term.