MS Wire rod manufacturers in Indian market seems receiving small orders, however as the productions are healthier they need bulk bookings too.
Raipur & Durgapur, are the major mandi’s of wire rod, where in the each market size is close to 20,000-25,000 MT wire rod on production basis in a month by the renowned integrated plants and sold across India. Also the producers exports wire rod to the neighbouring countries.
As per mill owners in Raipur, Central India towards the beginning of week, small parcels have booked by traders end, however future bookings are not seen. One of the reason behind this is, discounts being provided too high by re-sellers & mills in Raipur at close to INR 1,300-1,600/MT on bulk trade volumes.
The reference trade price in Raipur is hovering at INR 36,800-37,000/MT for Wire rod(5.5mm) & INR 39,200-39,400/MT for HB Wire(12 gauge). In this week, the prices volatile by INR 300-500/MT.
Coming to Durgapur, eastern India, where few mills have diverted their productions for Rebar rather than Wire rod as margins and demand is quite good for Rebar. The Wire rod prices in Durgapur is hovering at INR 37,000-38,000/MT for 5.5mm, meanwhile Rebar being trading at same price range for 12mm.
As per mills, on an average the cost of production of Wire rod is high by about INR 1,000/MT than to make rebar. Hence majorly eyeing to produce rebar.
The traders in Kolkata/Durgapur being confirmed, no fresh bulk bookings, also no selling pressure with the mills as dispatches are earlier going on and currently productions are low for Wire rod. This has balanced supply-demand in wire rod resulting slight change in wire rod prices since a week duration.
SteelMint learned from recent data by JPC, Indian Wire rod productions by large & medium scale mills observed fall. In Feb’19, the total Wire rod (non-alloy) productions in India down by around 22% and recorded at 284,000 MT, in which productions by large mills fell by 17% to 181,000 MT & through the mid sized mills it recorded at 91,400 MT, slump by 36% M-o-M.
— Raipur based Real Ispat (GK TMT) & Prakash Industries have roll-over Wire rod prices today and reported at INR 38,400/MT ex-plant, excluding GST & trade discounts. As per officials, not much response since beginning of week and stocks are on average basis.
— Similarly in Durgapur where offers by Rashmi Metaliks & Paras Rolling Mills more or less firm day-on-day and heard at around INR 37,500/MT & INR 37,300/MT ex-plant, respectively.
— The current export offers by large & mid sized mills are equivalent and hovering at USD 555-560/MT CNF Raxaul border, Nepal.
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