The medium scale wire rod Industry reported fall in spot trades volumes, hence trade discount have been raised to boost sales.
Central India – Raipur one of the biggest manufacturing hub of medium scale Wire rod industry, the suppliers here have raised discount on spot trades from earlier INR 500-1,000/MT to current about INR 1,500/MT, the participants shared. The current offers by medium scale for 5.5mm Wire rod assessed at INR 41,800-42,000/MT ex-plant & excluding discount.
Similarly in Durgapur, East India where producers stated rising inventories due to weak domestic & export inquiries. The producers stated as the large producers giving competitive prices, demand with them poor presently for domestic & exports and have forced them either to reduce prices or provide discounts.
The latest offers by medium scale wire rod producers in Durgapur assessed at INR 41,500-42,000/MT, while the large scale producers offer for low carbon wire rod evaluated at INR 42,500-43,000/MT ex-mill.
In context to export offers to Nepal, the medium mills in Durgapur quoted at USD 610-615/MT (ex-plant), while similar price being quoted by SAIL (Steel Authority of India Limited) on ex-mill basis.
It should be noted that, India’s one of the major exporter of Wire rod – Vizag Steel also known as RINL an government owned steel producer had failed to attract buyers for its 5,500 MT (equivalent to 2 rakes) Wire rod export tender to Nepal.
Vizag Steel had cancelled its tender twice due to low bids than they were looking. As per participants, the company was received bids at about USD 615/MT and they were looking to close it not less than USD 640-650/MT ex-mill.
India’s Wire rod export during FY18 stood at 66,350 MT; declined by 3% year-on-year as against 68,350 MT in FY17. Meanwhile country’s saleable production of Wire rod rose sharply to 4.09 MnT in FY18 as compared to 3.73 MnT in FY17, SteelMint’s data shows.
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