Wire rod makers in Raipur and Durgapur have decreased their offers by INR 900/MT and INR 1,300/MT respectively in Jul’16.
Indian wire rod offers in Durgapur and Raipur have recorded a fall of INR 900/MT and INR 1,300/MT respectively during the month of Jul’16. Whereas, in Jun’16, it had decreased by INR 1,000/MT and INR 1,700/MT respectively.
Meanwhile, billet prices in Raipur and Durgapur also decreased by INR 700/MT and INR 500/MT respectively, lesser corrections than wire rod in the same period.
It indicates that demand was quite sluggish, majorly from downstream industry like GI and binding wire owing to seasonal slowdown.
Market participants are eagerly waiting on the decision of MIP extension on certain steel products, which is likely to announce on 4 Aug’16, a day before MIP going to expire. In addition, government is also considering to put anti-dumping duty for the long term measures.
It is also important to note that import of wire products in India is significantly more compared to other long products, especially rebar. It seems that any decision regarding the MIP extension is most likely to be seen in the Indian wire market.
Indian billet and wire prices as on 2 Aug’16
| City | MS Billet | M-o-M | 5.5 mm Wire Rod | M-o-M | Monthly Average wire rod prices (July’16) | Monthly Average wire rod prices (June’16) | % Change |
| Raipur | 20,050 | -700 | 24,900 | -900 | 26,000 | 27,000 | -4% |
| Durgapur | 19,800 | -500 | 22,600 | -1,300 | 24,200 | 25,400 | -5% |
Basic prices in INR/MT; ED and VAT/CST extra
Source: SteelMint Research
Note: Prices are basic, excise duty & other taxes
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