Indian Wire Rod Prices to Remain Under Pressure

Slump in demand, coupled with falling prices of raw material & semi finish, has resulted in fall in prices of wire rod by INR 700-1,000/MT W-o-W

Demand in Durgapur market failed to show any optimism as manufacturers’ prices indicate sluggish market conditions. MS billet prices declined by INR 700-800/MT whereas wire rod prices have fallen by INR 1,000/MT, indicating high inventory and prices to remain under pressure in future.

Similarly, wire manufacturers based in Raipur have lowered their prices in accordance with fall in MS billet prices. “Prices have fallen below our expectations and have bottomed out”, commented a GI wire drawing manufacturer based in Raipur. He also added that they are not receiving any outstation demand.

In Raipur, 5.5 mm wire rod is being offered at INR 33,000/MT, 12G GI wire at INR 43,500/MT and 12G barbed wire are at INR 46,000/MT respectively(Prices inclusive of all taxes).

Primary manufacturers continue to remain aggressive

As per sources, RINL is offering wire rod at INR 35,500/MT, FOR Chandigarh (prices including all, VAT extra) and SAIL (IISCO steel plant, Burnpur) is offering 6 mm wire rod at INR 34,500/MT (Prices inclusive all taxes). Secondary manufacturers’ 5.5 mm wire rod prices are prevailing at INR 34,500-35,000/MT (delivered to North India).

Wire rod imports

Imported Chinese wire rod offers continue to decline as a result of weak Chinese market. Current offers for wire rods of 6.5 mm of chromium added material are prevailing at around USD 340-345/MT and for boron added material at USD 360-370/MT, CFR Mumbai for August end deliveries(7.5% Import Duty & CVD 12.5% and SAD extra).

Reportedly, import of 20G binding wire has also begun from China. An importer based in Mandi, who will import via Mundra Port, has booked the material at USD 450/MT FOB China for August end deliveries.

Indian Billet and Wire Prices

Basic Prices in INR/MT as on 13 July’15 ED and VAT/CST extra
Source: SteelMint Research