Indian wire rod prices fall
2015-08-11 08:59:52 [Print]
BEIJING (Asian Metal) 11 Aug 15 - The price of wire rod is powerless to go up in India influenced by the stagnant demand from downstream consumers and brunt of low-cost imported materials from China. Insiders deem it is likely that prices of wire rod will continue to come down slightly in the near future.
A wire rod trader from a small-sized company in Bihar reported that the current price of SAE1008 Φ6.5mm from local mills is INR30,500/t (USD478/t) all taxes included, down by INR500/t (USD8/t) compared with that of last week.
Noted by the source, even though the Indian government tried to restrict importing wire rod, there are a large volume of imported materials from China. “Prices of wire rod with Chinese origin are around INR1,200/t (USD19/t) lower than those of materials from local steel mills,” he says, downstream consumers prefer to buy imported wire rod with low cost. His sales volume was around 400 tons in July, but he predicts that it can hardly reach this level in August as he is informed that prices of wire rod from China are likely to come down again.
A trader from a large-sized company in Mumbai states that the current price of wire rod SAE1008 Φ6.5mm from local mills is INR30,300/t (USD475/t) all taxes included, down by INR200/t (USD2/t) compared with that of two weeks ago.
According to the source, there is little activity in the wire rod market in India at present as it is in the rainy season and the demand from constructional projects shrank fast in past two months. In addition, the import volume for finished steels increased in past several months. “It is reported that India imported 2.57 million tons of steels in Q2 of this year, of which 75% is from China, South Korea and Japan,” he says, adding that prices of low-cost imported materials from these countries restrained the consumption of wire rod from local steel mills. The source reveals that his sales volume for wire rod was around 12,000 tons in Q2, less than that of 15,000 tons in Q1. The source shows little confidence in the market outlook in August.
A wire rod trader from a small-sized company in Bihar reported that the current price of SAE1008 Φ6.5mm from local mills is INR30,500/t (USD478/t) all taxes included, down by INR500/t (USD8/t) compared with that of last week.
Noted by the source, even though the Indian government tried to restrict importing wire rod, there are a large volume of imported materials from China. “Prices of wire rod with Chinese origin are around INR1,200/t (USD19/t) lower than those of materials from local steel mills,” he says, downstream consumers prefer to buy imported wire rod with low cost. His sales volume was around 400 tons in July, but he predicts that it can hardly reach this level in August as he is informed that prices of wire rod from China are likely to come down again.
A trader from a large-sized company in Mumbai states that the current price of wire rod SAE1008 Φ6.5mm from local mills is INR30,300/t (USD475/t) all taxes included, down by INR200/t (USD2/t) compared with that of two weeks ago.
According to the source, there is little activity in the wire rod market in India at present as it is in the rainy season and the demand from constructional projects shrank fast in past two months. In addition, the import volume for finished steels increased in past several months. “It is reported that India imported 2.57 million tons of steels in Q2 of this year, of which 75% is from China, South Korea and Japan,” he says, adding that prices of low-cost imported materials from these countries restrained the consumption of wire rod from local steel mills. The source reveals that his sales volume for wire rod was around 12,000 tons in Q2, less than that of 15,000 tons in Q1. The source shows little confidence in the market outlook in August.
