Secondary Wire Rod and H.B prices in Raipur and Durgapur have declined by INR 300/MT W-o-W. Trade sources confirmed Wire Rod import under alloy steel category seen a sharp hike in last few months.
Demand of finished Wire like Binding and Barbed Wire is very low in the market. Amid low buying in the market, conversion spread has also reduced from H.B to Binding Wire and H.B to GI Wire as compared to the previous month.
Currently, Wire Rod (5.5 mm) in Raipur & Durgapur is traded at INR 41,200/MT and INR 40,700/MT (including all taxes) respectively. While, Binding Wire (20G) in Raipur is trading in the range of INR 47,500-48,000/MT and in Durgapur it is at INR 51,200/MT (including all taxes). This indicates that Binding Wire in Raipur is cheaper by INR 3,000-3,500/MT than Durgapur.
Meanwhile, GI (12G) in Raipur is trading in the range of INR 49,400-49,700/MT; down by INR 500/MT in the last 1-week.
12G HB Wire is trading in Raipur & Durgapur at INR 43,400/MT and INR 43,000/MT (including all) respectively.
A well-know trader based in Kolkata said, “Imported Wire Rod prices are in middle of primary & secondary producers’ price. Present imported Wire Rod 5.5 mm offer in Chennai is at INR 42,000/MT (VAT extra).”
As per the sources and provision data with SteelMint, import of alloy steel Wire Rod has increased to monthly average quantity of 35,000MT. Over 70,000 MT Wire Rod (HS Code 72279090) under alloy steel has been imported from July, 2014.
Wire Import to India in Last 3 Months
|
Alloy Steel |
Non-alloy Steel |
|||
|
Month |
Total Import |
China’s Contribution |
Total Import |
China’s Contribution |
|
Jul’14 |
50,404 |
47,002 |
11,299 |
7,664 |
|
Aug’14 |
26,144 |
20,528 |
7,116 |
4,845 |
|
* Sep’14 |
31,890 |
30,587 |
1,631 |
1,145 |
Source: SteelMint Research; Provisional data
* till 13 Sep, 2014
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