- Active trades, rising input costs push up IF tags
- Tier-1 mills lift prices, but buying remains slow
Indian wire rod prices surged in March 2025. In the induction furnace (IF) segment, wire rod prices touched a five-month high in Durgapur market, increasing by INR 2,100/tonne (t) ($24/t) to a monthly average of INR 45,150/t ($527/t) exw-Durgapur and prices touched six-months high in Raipur market by INR 1,600/t ($19/t) to INR 45,000/t ($526/t) exw-Raipur as compared to February 2025.
The spot trade reference prices stood at INR 47,000/t ($552/t) exw-Raipur and INR 47,300/t ($555/t) exw-Durgapur as on 3 April 2025.
Notably, for IF-route wire rods, Raipur (central region) and Durgapur (eastern region) are the major supply centres catering to various other markets across the country. The cumulative daily wire rod production capacity in these two markets is around 20,000 t, as per data maintained with BigMint.
In the BF segment, wire rod prices (5.5-6 mm, SAE1008) rose sharply by INR 800/t ($9/t) m-o-m to an average of INR 53,100/t ($620/t) exw-Jharkhand in March 2025.
Factors behind market dynamics
Raw material prices rise: Wire rod manufacturers were able to maintain higher prices, partly due to strong demand for raw materials (billet and sponge iron). In March 2025, steel billet prices hit a six-month high amid positive market sentiment, influenced by moderate buying. Despite fluctuating finished steel demand from construction and infrastructure projects, buyers increased procurement in expectation of a further price rise. A significant m-o-m increase of INR 1,200-2,700/t was observed in billet prices, primarily in central, eastern, and southern India. Sponge iron prices also increased by INR 1,000-1,550/t m-o-m amid moderate demand, and improved billet and finished steel buying, particularly from Chhattisgarh and West Bengal. Such factors pushed up IF wire rod prices in March 2025.
Market sees active buying: The wire rod market experienced a notable uptick in inquiries in March 2025, leading to active trades. Additionally, increased demand for downstream products, such as galvanized wire and binding wire, helped absorb excess wire rod production. This also led to a reduction in selling pressure, and the dispatch of previously booked stock took place smoothly.
Primary mills lift prices: In the BF segment, wire rod prices (5.5-6 mm, SAE1008) rose by INR 800/t ($9/t) m-o-m to an average of INR 53,100/t ($620/t) exw-Jharkhand in March 2025. Wire rod prices increased m-o-m following an interim price hike by primary mills during the month. However, demand from buyers remained slow. Wire rod prices (5.5-6 mm, SAE1008) were assessed at INR 53,100/t ($620/t) exw-Jharkhand, as per BigMint’s assessment on 28 March 2025. Indian primary mills have increased wire rod prices by up to INR 1,350/t ($16/t) for April 2025 deliveries over end-March prices, sources informed BigMint.
Outlook
Participants expect that the price increase might continue in the near future due to reduced inventory pressure and strong demand in the market.
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