Domestic wire rod prices have fallen this week. Also, the government has postponed hearing on MIP imposition on wire rod scheduled on 6 Apr’16 in the Delhi High Court.
Indian secondary wire rod manufacturers reported that demand of wire rod is comparatively better than rebar presently. However, prices have fallen by INR 700/MT in a week’s time in both Raipur and Durgapur owing to low billet prices and competition among producers.
Domestic demand of wire rod had improved post MIP as the government imposed MIP at USD 449-451/MT under chapter 7227. Out of total 1 MnT wire imported in FY16, about 0.86 MnT of material was imported under 7227 category and the rest came under chapter 7217, on which there is no MIP.
Presently, wire rod and HB manufacturers in Raipur are offering the material at INR 28,200/MT and INR 30,200/MT (basic price) respectively. Prices for both the material have decreased by NR 700/MT W-o-W.
Similarly in Durgapur, wire rod and HB are available at INR 26,800/MT and INR 28,700/MT (basic price) respectively. Prices have decreased by upto INR 700/MT W-o-W for both the material.
Meanwhile, 12G GI wire and 12G barbed wire are available at INR 36,800/MT and INR 38,900/MT respectively (basic price) in Raipur. Offers remain unchanged in a week.
Hearing postponed on wire rod
Steel Wire Manufacturers Association India (SWMAI) had filed a petition against MIP imposition on wire rod in the middle of Mar’16, for which the hearing was scheduled on 6 Apr’16 in the Delhi High Court. Now, the hearing has been postponed, as per official of SWMAI. However, date is not yet confirmed.
Primary market
Primary wire rod producers like RINL (Vizag Steel) and Steel Authority of India Limited (SAIL) had both increased wire rod offers by around INR 2,000/MT for Apr’16.
As per a large dealer based in Punjab, presently SAIL has offered the material at INR 35,600/MT FoR (included excise duty, CST, freight) in Punjab for 6 mm. Price gap between primary and secondary wire rod producers is around INR 1,000-1,500/MT.
Indian billet and wire prices as on 11 Apr’16
| City | MS Billet | W-o-W | 5.5 mm Wire Rod | W-o-W | 12G HB Wire | W-o-W | 20G Binding Wire | W-o-W |
| Raipur | 22,450 | -700 | 28,200 | -700 | 30,200 | -700 | 36,000 | -400 |
| Durgapur | 22,450 | -500 | 26,800 | -700 | 28,700 | -700 | 35,600 | -700 |
Basic prices in INR/MT; ED and VAT/CST extra
Source: SteelMint Research
Global wire rod prices in week 15 (4-10 Apr’16)
|
Region |
Offers in USD/MT |
W-o-W |
| China export (FoB main port) | 355 | +7 |
| CIS export (FoB Black Sea) | 370 | +5 |
| South East Asia (CFR) | 365 | +6 |
Prices in USD/MT
Source: SteelMint Research
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