Indian State Owned Mill Concludes Wire Rod Export Tender

Rashtriya Ispat Nigam Limited (RINL), also known as Vizag Steel, an Indian government owned steel maker had floated an export tender of 10,000 MT Wire rod grade SAE1008 for Jan-end 2018 delivery.

As per market participants, the company has managed to conclude it at around USD 568/MT, FOB India east coast levels. Prices in global market have increased on account of higher billet prices and falling steel exports from China.

Some large private mills expect that export prices should be over USD 600/MT FOB India. Most of them have held their export offers on anticipation of higher prices in domestic and global market.

“I feel, fair price for low carbon wire rod from India should not be less than USD 600/MT FOB India. Domestic prices are hovering at INR 37,000-39,000/MT (USD 580-610/MT) on Ex-Mumbai basis, excluding 18% GST. With lower availability of Chinese wire rod, Indian wire rod has high demand ” said a steel manufacturer based in Mumbai.

Market participants expect that domestic wire rod prices to move up further by INR 1,000/MT () in January on improved demand and rising cost of raw materials. Current offers by large manufacturers are at INR 38,500-39,000/MT (USD 600-610), ex-Mumbai and by medium manufacturers at INR 36,500-37,000/MT (USD 570-580) ex-Mumbai

Wire Rod reference prices

Basic prices
Source: SteelMint Research