- IF-route prices up by INR 800/t, BF-route falls sharply
- Primary mills see weak demand, yet hike early Feb offers
Indian wire rod prices showed mixed trends in January 2025. In the induction furnace (IF)-route segment, wire rod prices witnessed a monthly average increase of INR 800/tonne ($9/t) to INR 42,300/t ($484/t) exw-Durgapur and by INR 400/t ($4.5/t) to INR 43,000/t ($492/t) exw-Raipur as compared to December 2024 levels.
The spot trade reference price stands at INR 43,100/t ($493/t) exw-Raipur and INR 43,000/t ($492/t) exw-Durgapur as on 6 February 2025.
Notably, for IF-route wire rods, Raipur (central region) and Durgapur (eastern region) are the major supply centres catering to various other markets across the country. The cumulative daily wire rods production capacity in these two markets is around 20,000 t, as per data maintained with BigMint.
In the BF-segment, wire rod prices (5.5-6mm, SAE1008) dropped by INR 1,250/t ($14/t) m-o-m to an average of INR 52,500/t ($599/t) exw-Jharkhand in January 2025.
Factors behind market dynamics
Raw material price trends: Prices of steel billets and sponge iron — the basic raw material of the IF mills — marginally fluctuated by INR 100-200/t throughout January. Moderate buying enquiries and trades in nearby markets helped manufacturers keep their prices either stable or allow these to fluctuate as per demand and supply dynamics. This factor also pushed up IF wire rod price in January. In the benchmark Raipur market, on a monthly average basis, billet prices increased by INR 200/t ($2/t) to 39,100/t ($447/t) exw and sponge iron (PDRI FeM 80% +/- 1) marginally decreased by INR 150/t ($2/t) to 24,500/t ($280/t) exw m-o-m.
Moderate buying enquires: The buying enquires were moderate in wire rods. End-users of wire rods, like binding and GI wire manufacturers, steered clear of bulk procurement owing to uncertainty in market direction and purchased only as per requirement to run their mills. Additionally, wire rod manufacturers also adjusted their production to maintain demand and supply balance in the market and avoid stock pressure. This factor also supported prices. However, at times. bid-offer disparities pressured suppliers to offer attractive trade discounts up to INR 500/t to liquidate material to avoid inventory pile-up.
Primary mills see weak steel demand: Wire rod prices dropped m-o-m in January amid slow buying interest and a mid-month price reduction by mills. Demand from buyers continued to remain weak weighing on the market sentiments in January, but still Indian primary mills announced an increase of INR 500-1,000/t ($6-12/t) in list prices of wire rods for early-February 2025. Following this, wire rod prices (5.5-6mm, SAE1008) rose by INR 800/t ($9/t) w-o-w to INR 52,600/t ($600/t) exw-Jharkhand as per BigMint’s assessment on 7 February, 2025. Wire rod production from the BF-route segment largely remained stable on the year at 3.77 mnt in 2024 as against 3.75 mnt in 2023.
Outlook
Participants expect continued price increases in the near future due to limited supply. However, there is uncertainty about whether buyers will accept these higher prices, as they may be hesitant given the current market conditions and existing price trends.
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