After the recent hike in prices due to power failure in Raipur, wire manufacturers have lowered their offers due to selling pressure in the market.
Wire rod prices have declined by almost INR 1,000/MT in a week. Due to power problem in the main industrial areas of Raipur, the prices soared, which consequently brought about selling pressure in the market. Also, the arrival of monsoon in central India has pushed down demand, which in turn has led to fall in prices.
Meanwhile, sources report that there was shortage of wire rod in Durgapur, which had kept the market almost stable. The shortage was because two big plants, Adhunik and Gagan (production(approx) 250-300 ton/day), had stopped manufacturing wire rods and had started rebar manufacturing due to better conversion from billet to TMT as compared to wire rods. As per sources, it is being heard that they have resumed production and this will reduce the prices in Durgapur.
A GI wire manufacturer based in Raipur remarked, “Market is at its bottom level. From here prices would sustain since they can decline only upto a certain extent.”
Currently, in Raipur 12G GI wire and 12G barbed wire are being offered at INR 43,000/MT and INR 45,500/MT respectively (price including all).
Primary Market
Sources revealed, SAIL (IISCO steel plant, Durgapur) is offering 6 mm wire rod at around INR 29,000/MT while SAIL (Bhilai Steel Plant) is offering the same at INR 30,000/MT (basic price, excise duty & VAT extra). Another primary producer, VSP is offering the material at INR 36,000/MT, FOR Chandigarh (prices including all, VAT extra).
Wire Rod Imports
It is assessed that even after the rise in import duty on wire rods from 5% to 7.5% the offers have remained the same for imported wire rods.Current offers for wire rods of 6.5 mm are prevailing at around USD 370-375/MT CFR Mumbai, July shipment, origin China. Import duty 7.5% & CVD 12.5% and SAD extra.
“The rise in import duty is not that substantial as it has risen only by 2.5%”, quoted an importer who imports via dealers from Mumbai.
Indian Billet and Wire prices
|
City |
MS Billet | W-o-W Change | 5.5 mm Wire Rod | W-o-W Change | 12G HB Wire | W-o-W Change | 20G Binding Wire |
W-o-W Change |
| Raipur | 25,000 | – 750 | 29,100 | – 1,000 | 30,900 | – 1,000 | 36,000 | – 1,000 |
| Durgapur | 24,900 | – 200 | 29,000 | – 200 | 31,000 | – 200 | 38,100 | 0 |
Basic prices in INR/MT as on 22nd June’15 ED and VAT/CST extra
Source: SteelMint Research
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