According to Joint Plant Committee, Indian Wire rod production was down marginally by 3% M-o-M in Jun’18 and stood at 3,15,000 MT compared to 3,24,000 MT in May’18.
It seems that seasonal poor off take, resulting down trend in productions.
Out of total Wire rod production in June’18, large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL consist of 60% market share and rest produces by other medium scale producers.
However, on a cumulative basis during Apr-Jun’18, Indian Wire rod production by large mills marginally rise by 1% compare to corresponding period in previous year. While, it has increased by about 3% by other producers in the same duration.
As per market participants report, presently Wire rod stock positions with the medium size mills have increased in line with seasonal dull demand and also due to logistic issue as transporters strike continuous since a week duration. In line with large mills, as per sources, the producers have maintained stock on average basis.
— Currently the domestic trade reference prices by medium mills hovering at INR 35,400-35,600/MT (USD 515-519) ex-works, Central/East India for 5.5 mm & commercial grade.
— Large mills domestic offer for MS grade, 5.5 mm Wire rod assessed at around INR 42,000/MT (USD 612) ex-works, Central India & INR 45,300/MT (USD 660) in South India.
— Export offers of commercial grade Wire rod stood at around USD 510/MT ex-mill, Durgapur, equivalent to USD 535/MT CFR Raxaul border (Nepal).
Indian Wire Rod Production (Non Alloy Steel)
| Particulars | SAIL | RINL | TSL | JSWL | JSPL | Total ISP | Others | Total Production for sale | % Change |
| Apr’18 | 26,000 | 46,000 | 56,000 | 46,000 | 29,000 | 2,03,000 | 1,25,000 | 3,28,000 | |
| May’18 | 16,000 | 36,000 | 62,000 | 45,000 | 29,000 | 1,88,000 | 1,36,000 | 3,24,000 | -1% |
| Jun’18 | 15,000 | 45,000 | 60,000 | 45,000 | 21,000 | 1,86,000 | 1,29,000 | 3,15,000 | -3% |
| Apr-Jun’18* | 57,000 | 1,27,000 | 1,78,000 | 1,36,000 | 79,000 | 5,77,000 | 3,90,000 | 9,67,000 | +2% |
| Apr-Jun’17* | 62,000 | 1,56,000 | 1,85,000 | 1,41,000 | 28,000 | 5,72,000 | 3,78,000 | 9,50,000 |
* Compared to Year-on-Year (Y-o-Y)
Quantity in MT
Source: JPC – Steel Ministry, SteelMint Research
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