India: SAIL Wire Rod Production Surge by Almost 50% in December
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State owned- Steel Authority of India Limited (SAIL), the largest steel producers in India has recorded sharp surge in wire rod production by 46% in Dec'18 and stood at around 19,000 MT in comparison with 13,000 MT in Nov'18, as per JPC- Ministry of Steel.
"As per demand, the producer prefer to produce more wire rod than the rebars in its both Bhilai (BSP) and Burnpur (IISCO) unit. In addition the company soon to start productions of High Carbon Wire Rod in Burnpur unit " few of close sources with the SAIL stated.
Although in comparison with overall Large mills wire rod production, it observed marginal fall, however through the medium mills it was sharp surge M-o-M in Dec'18, as per JPC.
In large mills, the wire rod production by Tata Steel down by 17% in Dec'18 to 50,000 MT, JSW steel production was marginally down to around 46,000 MT in Dec'18 and JSPL reported at around 23,000 MT, down by 8% on monthly premises. However RINL (Vizag Steel) production observed an increase of 11% M-o-M to around 52,000 MT in Dec'18.
Overall Indian Wire Rod production by both large & medium scale mills increased by about 3% in Dec'18 and stood at 3,33,000 MT as compared to 3,23,000 MT in Nov'18, as per JPC.
Out of total wire rod output in Dec'18, the large mills produced about 1,90,000 MT, fell by 1% as compared to 1,92,000 MT in Dec'18. However medium mills recorded significant growth by 9% to around 1,43,000 MT in Dec'18 as against Nov'18, which are mainly produced Raipur and Durgapur based mills.
During Apr-Dec'18, the total wire rod production in India (including large & medium mills) stood at around 2.97 MnT. Out of this, the large steel mills like SAIL, RINL, Tata Steel, JSW Steel and JSPL contributed about 60% proportion and rest was produced through the medium scale producers, as per report.
Latest Prices Assessment
-- Wire rod prices in Durgapur hovering in the range of INR 37,000/MT (USD 522) for 5.5mm commercial grade material, ex-works & excluding GST.
-- Meanwhile prices for same material in Raipur evaluated at around INR 38,100/MT (USD 536) ex-works & excluding GST. Trade discounts being offered through the suppliers by around INR 1,000/MT depending on the quantity.
-- Large mills domestic Wire rod offer for SAE 1008 grade, 5.5-6 mm is assessed at around INR 43,700-44,200/MT (USD 640-644) FoR Chennai & INR 41,500-42,000/MT ex-plant, Jharkhand (excluding GST).
-- Wire rod export offers through the medium mills located in Eastern India (Durgapur) reported at around USD 515/MT for commercial grade, while by large mills for blast furnace grade it evaluated at close to USD 540-550/MT, Ex-Mill.
