Indian Wire Rod Prices Rally on Improve Demand & Rising Billet Prices
...
Wire rod prices in Raipur & Durgapur which are known as hub of medium scale industries in India have surge by INR 1,000-2,000/MT (USD 14-28) in a week duration on improve domestic demand and with increase in Billet prices.
During the period, major price rise has seen in Durgapur by upto INR 2,000/MT as few plants are still shut down in the market owing to maintenance works which lead to widening gap between demand and supply.
The current prices of wire rod in Durgapur are hovering in the range of INR 41,000-41,500/MT (USD 585-592) for 5.5mm material, ex-works & excluding GST.
Meanwhile, wire rod prices in Raipur evaluated at around INR 40,700/MT (USD 582) ex-works & excluding GST. Besides, the discount offered by various manufacturers/supplier hovers at INR 400-600/MT in the current week.
As per a GI wire manufacturer in Raipur, "Prices are certainly rising for wire rod and HB in a week which was really unexpected. However, demand is lacking at higher prices for downstream products like GI, Barbed & Binding wire".
A wire rod producer in Durgapur stated that "We have seen quite healthy demand of wire rod from both local as well as North India."
He also added that, at present wire rod export references prices to Nepal for commercial grade 5.5 mm hovers at USD 585-590/MT (ex-mill).
Recently, Vizag Steel (RINL) has also invited a tender for export of 10,000 MT Wire Rod (size 5.5mm, SAE 1008 grade). The bids due date for the tender is 4th Sep'18.
Large Mills Offer
The current offer for blast furnace grade wire rod is evaluated at INR 45,000-45,500/MT (USD 642-650) ex-Mumbai, 5.5mm & excluding GST. By looking at such sharp increase in wire rod prices by medium mills since last few days, large mills are most likely to increase wire rod prices by INR 750-1,000/MT in early Sep'18.
Indian billet and wire prices as on 25 Aug'18
| 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 | 36,000 | +1,300 | 40,700 | +1,000 | 42,800 | +1,000 | 46,800 | +1,200 |
| Durgapur | 35,900 | +1,100 | 41,400 | +1,900 | 43,400 | +1,900 | 50,000 | +1,500 |
Basic prices in INR/MT; GST extra
Source: SteelMint Research
