India: Secondary Wire Demand remains Dull in Raipur & Durgapur

Secondary Wire Rod prices remain unchanged at Durgapur. Whereas, offers in Raipur have declined by INR 300/MT W-o-W.

In Durgapur, Wire Rod prices are stable from the starting of the month owing to low trade taking place in the market. Currently, Wire Rod (5.5 mm) is trading at INR 40,100/MT and 12G HB at INR 42,500/MT (both inclusive of all taxes).

“Durgapur supplies Wire majorly in North region especially Delhi/Ghaziabad owing to better viability as freight is low as compared from Raipur to Delhi. Freight from Durgapur to New Delhi is around INR 1,600-1,700/MT and Raipur to Delhi is around INR 2,200-2,300/MT,” said one on of the traders at Durgapur.

He also added that imported Wire Rod is landed in Kolkata market and it is trading in the range of INR 38,000-39,000/MT, which is lesser than domestic price.

In Raipur, Wire Rod manufacturers reduce the prices by INR 300/MT for the last 1-week and currently they are offering at INR 41,300/MT for 5.5 mm and 12G HB at INR 43,350/MT (inclusive of all taxes).

Binding Wire (20G) offers in Durgapur & Raipur is INR 51,200/MT and INR 48,000/MT respectively (both inclusive of all taxes). Conversion spread is still high at around INR 8,500-9,000/MT in Durgapur but in Raipur,  it slip to INR 4,500/MT.

Limited buyers are for GI Wire owing to very low sales in Barbed wire. Currently, 12G GI Wire is trading at INR 49,100/MT in the local market and 12G Barbed at INR 50,800/MT (both inclusive of all taxes).

According to one of the GI manufacturers, demand of GI is very poor owing to low sales of end product like Barbed wire, but we expect market to move upwards after Deepawali.

Weekly Price Change of Wire Rod (5.5 mm) and Billet

Prices in INR/MT as on 11 Oct, 2014