Indian Wire Rod Offers Rally, Trades Remain Bearish

The mid sized mills have constantly raised wire rod offers following surge in domestic billet prices on slight improved demand & supply crunch in Central region. However SteelMint learned that, the trade volume in wire rod remained thin in major markets - Raipur & Durgapur where the large number of private mills are located.

As per assessment, Wire rod prices of private mills surged approximately by INR 500/MT (USD 7) in last 3-4 days; similar to surge in billet prices.

In context to stock in Wire rod, the mills in Raipur reported hand to mouth position, even couple of mills reported pending dispatches to neighbouring markets specially for southern region. The offers for 5.5 mm Wie rod reported at INR 38,300/MT & few of deals at close at INR 37,600-37,800/MT; ex-plant.

Meanwhile in Durgapur the stock is sufficient with renowned mills who also involved in exports to Nepal. The offers for 5.5 mm wire rod in Durgapur assessed in the range of INR 37,000-38,000/MT ex-plant.

-- Raipur based Real Ispat has raised Wire rod prices by INR 200/MT to INR 38,300/MT ex-plant, 5.5 mm & excluding discount & GST. The company has monthly installed capacity of more than 30,000 MT.

-- Similarly one of the medium range mill, Rashmi Metaliks in Kharagpur (Durgapur) has increased Wire rod (5.5mm) prices by INR 300/MT to INR 37,300/MT ex-plant, as per sources.

-- In line with blast furnace grade Wire rod, the offers by Electrosteels Ltd based in Bokaro, Jharkhand heard at close to INR 42,000/MT (ex-plant) for low carbon & 5.5-6.0mm.

-- Coming to export offers, it currently evaluated at around USD 520-525/MT by mid sized mills & USD 540/MT by large scale mills; ex-works in eastern India.