Wire rod prices in Raipur & Durgapur which are known as hub of medium scale industries in India, slump about INR 500/MT on decline in billet prices. Earlier in the beginning of week the prices moved up sharply by about INR 1,200/MT backed by strong billet prices.
As per Wire rod producers, demand is not upto the mark, however as the prices of billet surged they didn’t had other option but to raise offers.
Meanwhile it is being reported that current demand-supply in Durgapur is matched. However it seems that with resumption of operations by manufacturers namely -Ankit Metal, Shree Parasnath Re-rolling mills & Adhunik Industries, local prices of wire rod are likely to slide further.
The current prices of wire rod in Durgapur hovering at INR 37,500-38,000/MT (USD 542-550) for 5.5mm, ex-works & excluding GST.
Coming to Raipur, Central India where the producers & re-sellers are providing good trade discount to the buyers in line to get better deals and as per reports the trade discount range is about INR 800-1,500/MT and the offers for 5.5 mm wire rod assessed at INR 38,600/MT (USD 558) ex-work & excluding GST.
Indian billet and wire prices as on 10 Aug’18
| City | MS Billet | W-o-W | 5.5 mm Wire Rod | W-o-W | 12G HB Wire | W-o-W | 20G Binding Wire | W-o-W |
| Raipur | 32,900 | +1,000 | 38,600 | +1,200 | 40,700 | +1,200 | 44,000 | +1,000 |
| Durgapur | 33,400 | +1,200 | 37,700 | +1,400 | 39,700 | +1,400 | 47,000 | +1,000 |
Basic prices in INR/MT; GST 18% extra
Source: SteelMint Research
Offers from Large Mills Dip
As per participants, the large mills also aggressively looking for fresh bulk bookings as seasonal low demand has raised inventories with them.
The current offer for blast furnace grade wire rod evaluated at INR 44,500/MT (USD 643) in Chennai, South India for 5.5mm & excluding GST.
Demand in exports turn weak
Presently export inquiries for wire rod also reported weak by Medium & Large mills.
As per medium mills in Durgapur, export demand from Nepal is weak as no major deals are taking place. The current export offers to Nepal for commercial grade 5.5 mm wire rod reported at around USD 545/MT ex-mill.
Recent tender floated by Vizag Steel (RINL) to export of 2,752 MT wire rod to Nepal was also received weak response as bid prices was low than the company’s expectation. The company had received highest bid at about USD 537-540/MT.
Another export tender of Vizag Steel for 12,500 MT wire rod to Ocean nations which is going to expire on 11 Aug’18.
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