India: RINL Wire Rod Production Slumps 25% in October
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Vizag Steel (RINL) has reported sharp fall in Wire rod production by 25% M-o-M in Oct'18, as per recent released data by JPC.
The company has produced about 53,000 MT Wire rod in Oct'18, sharply decreased by 25% M-o-M.
The production had fallen as the priority was to make more rebar instead of Wire rod as per market requirement in WRM-1 which has a annual installed capacity of around 0.85 MnT, as per sources.
In another WRM-2 which is dedicated to produce Wire rod across sizes has a production capacity of about 0.6 MnT per annum.
Meanwhile, the total Wire rod productions in India by both large & medium scale mills being fall by 3% in Oct'18 and stood at 3,35,000 MT as compared to 3,46,000 MT in Sep'18 , as per Joint Plant Committee (JPC).
Out of total wire rod output in Oct'18, production by the large mills stood at 2,00,000 MT, down by 8% compared to 2,18,000 MT in Sep'18 and rest was produced by medium mills which are mainly located at Raipur and Durgapur.
However in large mills production by Tata Steel has surge by 23% M-o-M in Oct'18 and stood at 64,000 MT, while JSPL wire rod productions was down by 28% to 23,000 MT in the same period.
During Apr-Oct'18, total wire rod production in India (including large & medium mills) stood at around 2.31 MnT. Out of this, the large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL contributed about 61% proportion and rest was produced through the medium scale producers, as per report.
Latest Prices Assessment
At present, Wire rod prices in Durgapur are hovering in the range of INR 38,000-38,500/MT (USD 545-553) for 5.5mm commercial grade material, ex-works & excluding GST.
Meanwhile prices for same material in Raipur evaluated at around INR 38,500/MT (USD 553) ex-works & excluding GST. Trade discounts being offered through the suppliers depending on the quantity.
Large mills domestic Wire rod offer for SAE 1008 grade, 5.5-6 mm is assessed at around INR 46,000-46,500/MT (USD 660-668) FoR Chennai, GST extra.
Export offers through the medium mills based in Durgapur, Eastern India for commercial grade Wire rod reported at close to USD 530-535/MT, Ex-Mill.
